Malaysia: EUDR implementation will increase production cost of commodity-based products, says Fadillah

Published 2023년 2월 23일

Tridge summary

The European Union Deforestation Regulation (EUDR), set to be implemented, is expected to increase the production costs of Malaysia's commodity-based products, including palm and related products, rubber, cocoa, and wood-based products. This is due to the requirement for these commodities to be free of deforestation activities after December 31, 2020. The EU is currently drafting guidelines for the due diligence report implementation mechanism and benchmarking process, expected to be issued by the third quarter of 2023. Malaysia, along with 13 other commodity-producing countries, has submitted an official objection to the EU Commission, stressing the need for dialogue with producing countries. The country has also raised the issue at the ASEAN level and is considering stopping exports to the EU as a form of protest.

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Original content

KUALA LUMPUR (Feb 23): The implementation of the European Union Deforestation Regulation (EUDR) by the European Union (EU) will increase the production cost of Malaysia’s commodity-based products, as well as affect their competitiveness, said Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also minister of plantation and commodities, said the ministry viewed that the EUDR is a form of non-tariff measure for Malaysia’s agricommodity products and the scope of the EUDR implementation covers the country’s major commodities such as palm and related products, rubber, cocoa, and wood-based products. “Commodities products imported into the EU must be free of deforestation activities that occurred after Dec 31, 2020, and managers or operators of these commodities products under the EUDR scope are required to prove that the products they produced are not linked to deforestation activities or forest degradation through a due diligence process involving traceability and ...

Source: Theedgemarkets