IMPORT bans on Malaysian palm oil and rubber gloves by the United States Customs and Border Protection (CBP) are unfair as they are based only on allegations of forced labour Plantation Industries and Commodities Minister Zuraida Kamaruddin said.

“The ministry has no intention of disputing the US CBP’s prerogative, but feel the claims are unfair and biased.

“The ban on Malaysian palm oil and palm oil products or rubber gloves for the matter, is based only on allegations of forced labour claims made by NGOs and other groups,” she said in a statement today.

Zuraida was commenting on press interviews with US CBP representatives who told the media how they derived evidence of forced labour in these industries.

Zuraida said the ministry “cannot totally agree with its reliance on third-party evidence in its investigation process”. 

However, she said it is the enforcement agency’s prerogative “to act based on what it views as proprietary information”. 

She said Malaysian palm oil and palm oil-based products would have to “bear the brunt of being in direct competition with soybean oil, of which the US is the world’s leading producer and second-leading exporter”.

Zuraida said Malaysian firms in labour-intensive sectors like plantations and rubber glove-making would do well to “pay heed to the CBP’s sensitivities”.

“Work around a remedy to avoid being slapped again by a Withhold Release Order (WRO) for accusations of forced labour.”

Malaysian companies that have been issued with WROs by the CBP over forced labour allegations include Sime Darby Plantation, Top Glove Corporation, Superman Corporation and companies under the Smart Glove group. – June 8, 2022.