Malaysia ready to cut EU imports if palm oil ban goes through, says minister

Melati A. Jalil Melati A. Jalil Updated 8 years ago · Published on 7 Mar 2018 11:39AM · 2 Comments

Plantation Industry and Commodities Minister Mah Siew Keong says the government is prepared to cut EU imports if the ban of palm oil in biofuels becomes a reality, but the government will first use diplomacy to challenge the ban. – The Malaysian Insight file pic, March 7, 2018.

MALAYSIA is hoping to use diplomacy to challenge a European Union (EU) move to ban palm oil use in biofuels, but is prepared to “retaliate” by slashing imports from the bloc’s 28-member countries, said Plantation Industry and Commodities Minister Mah Siew Keong.

Mah told Dewan Rakyat that for now, Malaysia would continue to use diplomatic channels to address the recently approved draft on renewable energy by the EU Parliament, which calls for the use of palm oil in biofuels to be banned from 2021.

If passed, the ban will badly affect both Malaysia and Indonesia, who are the world’s top producers of palm oil.

“Malaysia will continue to use diplomatic channels to resolve this issue.

“However if the draft does not favour Malaysia, we are ready to retaliate, including limiting the purchase of products from European Union (countries),” Mah said during the question-and-answer session in Parliament today.

“At the moment, there is no plan to cut diplomatic ties.”

Irmohizam Ibrahim (BN-Kuala Selangor) had asked the minister to state the strategic measure to address the EU import ban on palm oil, and the contingency plan if a solution couldn’t be achieved.

Mah also said Malaysia is working with Indonesia under the Malaysian Palm Oil Council (MPOC) to address the matter.

He also reiterated that a palm oil war room (POWR) has been set up to monitor and draft the country’s strategic measures on palm oil trade.

The EU Parliament voted last month to ban palm oil-based biofuels by 2021, while other vegetable oil-based biofuels, such as those from soy and rapeseed, could continue to be used until 2030.

Spain was the latest EU country to speak out against the resolution after France, Sweden, the United Kingdom, Germany and the Netherlands. – March 7, 2018.

Sign up or sign in here to comment.

Comments

  • Gerakan chief is grasping at straws. One moment he says there is no way EU is going to enforce the ban because major nations are against it, and he's not worried. Now, he's talking about retaliation. He should listen to what some Harapan MPs are saying - up the standards of palm oil industry, and continue to sell to Europe instead of fighting them. We import so many things from Europe, how would a trade war help Malaysia? Europe will laugh at Malaysia for retaliating because our exports to them are so insignificant.

    Harapan should make this an election issue because a large part of Felda planters plant oil palm. This is going to adversely impact them, and the government's lack of foresight is going to cost them their living.

    Posted 8 years ago by Quigon Bond · Reply

  • Well done Datuk Seri Mah, we need more decisive leader like this who will defend Malaysia's trade interest and the jobs of 650,000 oil palm farmers and their school-going children. Even EU chief Jean-Claude Juncker has vowed to retaliate against US Trump's aluminum tariffs threat --- so too Malaysia must defend its interest.

    Posted 8 years ago by Kuasa Rakyat · Reply