Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on January 18, 2018

KUALA LUMPUR: Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong yesterday slammed the European Parliament’s decision to ban all palm oil biofuels from the bloc’s renewable energy (RE) in future, calling the move unjustified and discriminatory.

In a strongly-worded statement, Mah said the move is a “wholly unjustified blockade” against Malaysia as it would allow all other oilseed crops to continue operating under the European Union’s (EU) RE directive.

“This is a clear case of discrimination against palm oil-producing countries. The EU is practising a form of crop apartheid. The Malaysian government views this as an unacceptable and protectionist trade barrier, and a breach of the EU’s World Trade Organization’s commitments,” he said.

Mah said the Malaysian government will take any action necessary to protect its 650,000 palm oil small farmers’ rights and secure the future of the palm oil sector that has lifted millions of Malaysians out of poverty.

“Protectionist discrimination against Malaysian palm oil exports will not be tolerated. The EU Parliament’s decision to discriminate against palm oil biofuels will negatively impact European trade in and cooperation with Malaysia, and the wider Southeast Asian region.”

Malaysia is urging European governments and the EU Council to reject the EU Parliament’s position on palm oil biofuels. “The parliament’s blockade will risk the the EU Council’s work in creating European jobs and expanding bilateral trade and other strategic interests in Southeast Asia,” said Mah.

Mah also dismisses the EU Parliament’s allegations concerning local oil palm plantations’ impact on the environment, saying it is “demonstrably false”.

“Malaysia has one of the most advanced forest protection regimes in the world, as recognised by the UN and the World Bank, among others. Malaysia’s forest protection is vastly superior to that of almost every EU member state.

“Malaysian palm oil exporters are able to meet the strictest standards in sustainability required by our European customers, and Malaysian palm oil biofuel exporters have been certified as sustainable by leading European sustainability schemes, including the German International Sustainability and Carbon Certification, as recognised by the EU Commission.

“Malaysia has proven world-leading sustainable palm oil practices, as confirmed by the EU Commission’s own recognised sustainability schemes.”

Mah said the EU Parliament’s attempt to denigrate Malaysia is insulting and has no basis, in terms of facts.

Palm oil accounts for RM70 billion of Malaysia’s annual export revenue and around 7.5% of its exports. About 39% of all oil palm plantations in Malaysia are cultivated by small farmers.
 

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