Malaysia may stop exporting palm oil to EU

Published Jan 27, 2023

Tridge summary

The European Union (EU) passed legislation in December 2022 prohibiting the trade of products linked to deforestation, including palm oil, unless importers can prove the production does not harm forests. This has sparked controversy, particularly from Indonesia and Malaysia, the world's leading palm oil producers. These countries plan to challenge the law with the help of expert consultations or by halting exports to Europe. Despite concerns, the EU insists the law does not target palm oil imports from Malaysia and emphasizes its goal of reducing deforestation. However, the EU's demand for palm oil is expected to decrease significantly over the next decade, with plans to phase out palm-based transport fuels by 2030.

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Original content

In December 2022, EU officials passed legislation banning the trade in palm oil products or other items linked to deforestation unless importers can demonstrate that production of the products no damage to the forest. The EU is currently a major importer of palm oil and the new law has provoked outcry from Indonesia and Malaysia, the world's top producers. Most recently, Malaysian Deputy Prime Minister Fadillah Yusof said that they and Indonesia will soon discuss this EU law. “We can look for foreign experts to consult on this issue. Or another option is to stop exporting to Europe and just focus on other countries,” added Fadillah Yusof. Environmental activists have blamed the palm oil industry for rampant deforestation in Southeast Asia's rainforests, even though Indonesia and Malaysia have created mandatory sustainability certification standards for all his plantation. Deputy Prime Minister Fadillah Yusof called on members of the Council of Palm Oil Producing Countries ...

Source: Vinanet