The Malaysian Government strongly opposes the Delegated Act published by the European Commission on March 13, 2019, that classifies palm oil as “high risk” and does not accept that the Delegated Act is justified on scientific or environmental grounds. No convincing explanation or data have been provided to justify the discrimination against Malaysian Palm Oil thus Malaysian Government views this EU Delegated Act as a protectionist instrument to restrict palm oil in the European market.
According to a statement by the Malaysian Minister of Foreign Affairs Dato’ Saifuddin Abdullah, the Malaysian Government strongly opposes the Delegated Act published by the European Commission that classifies palm oil as “high risk” and slams the Delegated Act drafting and feedback process is being flawed from the beginning.
The EU’s claim that the Delegated Act is based on calculating the relative risk of biofuels is disingenuous: in reality, the Delegated Act is a protectionist instrument to restrict palm oil in the European market. It is mind-boggling that the less competitive and less efficient oilseeds such as rapeseeds, sunflower oil, canola, and soybean are classified as ‘low risk’. Palm oil produces a higher yield than other oilseeds per hectare, about 4 to 10 times more productive than other oilseeds, said Minister Abdullah.
The Malaysian Government does not accept that the Delegated Act is justified on scientific or environmental grounds highlighting that “no convincing explanation or data have been provided to justify the discrimination against Malaysian Palm Oil”. Malaysia has consistently provided evidence of the sustainability of Malaysian Palm Oil, including the country-wide Malaysian Sustainable Palm Oil (MSPO) certification standard.
Therefore the Malaysian Government views this EU Delegated Act not as an environmental regulation – but as a calculated political act to remove Malaysia’s palm oil exports from the EU marketplace. Furthermore, such an “aggressive trade barrier targeted at Malaysia’s national interests, and our 650 000 small farmers, cannot pass without a strong response.”
Minister Abdullah also made clear that if this Delegated Act is passed into law, that Malaysia would look to the World Trade Organization (WTO) for recourse.
The hard-hitting action by the EU would undermine our nations’ cooperation and mutual friendship. Therefore, this matter should be treated in a fair and non-discriminatory manner with equal treatment and access for Malaysian Palm Oil alongside other oilseed feedstocks. It is extremely disappointing that the European Union, a trusted and valued friend and ally, would act to undermine Malaysia’s national interests in this manner. It is doubly disappointing, as the EU has consistently been a supporter of an international trading system, based on WTO rules. This discriminatory Delegated Act undermines the EU’s credibility as a proponent of the WTO-led rules-based system, Minister Abdullah said.
Minister Abdullah closed by adding that the Malaysian Government urges “our friends and counterparts in European capitals and in the Council to reject this Delegated Act and to instead preserve and strengthen the strong economic and trading relationship between Europe and ASEAN.”
