Trade and markets
 

Detail

Area
Malaysia
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/07/2017
Policy Category
Trade
Policy Instrument
Bilateral cooperation
Description
Announced that Malaysia and Indonesia would consider a joint challenge at WTO level of any measure the EU might take to restrict palm oil imports on sustainability grounds.
Notes
The Governments of Malaysia and Indonesia informed that they would consider challenging at WTO level possible measures by the European Union to restrict palm oil imports on sustainability grounds. The announcement is related to a recent resolution by the European Parliament that (i) calls for mandatory certification of all Europe-bound palm oil, and (ii) recommends phasing-out the use of biofuels made from palm oil and other vegetable oils purportedly produced in an unsustainable way (see MPPU June’17 and above item ‘FRANCE – palm oil use’). Meanwhile, the two countries agreed to carry out a joint mission to Europe to engage with relevant parties and stakeholders, and informed that they were ready to work with trade partners in addressing their concerns over sustainability. The two governments will coordinate their actions under the Council of Palm Oil Producing Countries (CPOPC), an initiative set up by Malaysia and Indonesia to stabilize prices through concerted actions on production and stocks.