KUALA LUMPUR (Reuters) – Malaysia on Thursday called on countries producing palm oil to strengthen cooperation following latest European Union (EU) laws geared toward reducing using palm oil-based fuels.
The EU is a key palm oil importer but demand is anticipated to fall significantly inside the subsequent 10 years attributable to a renewable energy directive to phase out palm-based transport fuels by 2030 over perceived links to deforestation.
The bloc last month agreed on a latest law that forestalls the sale of commodities linked to deforestation within the 27-country bloc, raising an outcry from top producers Indonesia and Malaysia.
Malaysian Commodities minister Fadillah Yusof urged the Council of Palm Oil Producing Countries (CPOPC) – led by Indonesia and Malaysia – to work together against the brand new regulations and to combat “baseless allegations” made by the EU and america in regards to the sustainability of the edible oil.
“It will mean that we’ll need to be more coordinated in our efforts in conveying our stand and stance on policy matters that may affect the socio-economic wellbeing of our respective countries,” Fadillah, who can be deputy Prime Minister, told a seminar.
CPOPC had previously accused the EU of unfairly targeting palm oil and creating trade barriers.
Indonesian President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim this week agreed to “fight discrimination against palm oil” and strengthen cooperation through CPOPC.
(Reporting by Mei Mei Chu; Editing by Ed Davies)
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