MALAYSIA will look to the World Trade Organisation (WTO) to challenge a European Union move to phase out palm oil.

Last week, the European Commission concluded that oil palm cultivation results in excessive deforestation, and the use of palm oil in transport fuel should be phased out.

The Foreign Ministry, in a statement over the weekend, said Putrajaya will bring a challenge to WTO over the European Commission’s plan, described by the government as a “calculated political act” and an unfair trade barrier to palm oil exports.

“Such an aggressive trade barrier targeted at Malaysia’s national interests, and our 650,000 small farmers, cannot pass without a strong response.

“It is with great regret that the government will announce, if this delegated act is passed into law, that Malaysia will look to WTO for recourse.”

The statement noted that Malaysia has consistently provided evidence of the sustainability of its palm oil, highlighting the implementation of the Malaysian Sustainable Palm Oil certification standard.

“The government does not accept that the delegated act is justified on scientific or environmental grounds. No convincing explanation or data has been provided to justify the discrimination against Malaysian palm oil.”

Malaysia is the world’s second-largest palm oil producer after Indonesia, which has already threatened to bring the case to WTO.

The countries have been battling with EU governments over attempts to curtail exports in a bid to address the rampant deforestation linked to oil palm cultivation. – March 18, 2019.