KUALA LUMPUR, Nov 30 — The vote on Nov 28, 2017 by the Industry, Research & Energy Committee (ITRE) of the European Union’s (EU) Parliament  to endorse the ban on palm oil biofuels in Europe, under EU’s Renewable Energy Directive (RED) is a step backwards for EU-Malaysia trade relations.

Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong, said the government would be compelled to take every necessary action to protect the rights of 650,000  small farmers and secure the future of the palm oil sector that has lifted millions of Malaysians out of poverty.  

“The move  to exclude palm oil biofuels from the EU’s renewable energy is a step backwards for EU-Malaysia trade ties. Taken together with the vote from the European Environmental Committee (ENVI) in October 2017, this clearly shows the EU intentionally plans to restrict the imports of palm oil biofuels.

“Any attempt to discriminate against, or exclude, palm oil biofuels will negatively impact European trade and cooperation in Malaysia, and the wider Southeast Asian region,” he said in a statement after the EU Parliament’s ITRE voted to endorse the ban on palm oil biofuels in Europe under EU’s RED.

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In addition, the ITRE Committee’s endorsement would allow competitor oilseeds to continue operating under the RED, whereas palm oil would be excluded, he said.

“The Malaysian Government views this as an unacceptable protectionist trade barrier and a breach of the EU’s World Trade Organisation commitments. Therefore, we will respond strongly should this provision be confirmed in the final directive as protectionist discrimination against Malaysian palm oil exports will not be tolerated,” he said.

As world-leading sustainable palm oil producing country, Malaysia has demonstrated serious commitment towards sustainability by making the Malaysian Sustainable Palm Oil standard to be mandatory for all Malaysian producers.

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

“Over and above, Malaysian palm oil exporters are able to meet the strictest standards of 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,” he said.

The Malaysian Government interpreted the attempts by EU members of Parliament (MPs) as insulting and denigratory, he said, adding that continued false and misleading allegations made by them relating to palm oil’s environmental impact were a clear attempt to smear the good name of Malaysian palm oil. — Bernama