Indonesia, Malaysia threaten to stop exporting palm oil to Europe
Indonesia and Malaysia have said that they could stop exporting palm oil to the European Union in response to a new EU law aimed at protecting forests by strictly regulating the sale of palm oil products.
Fresh fruit bunches of oil palm tree are are seen inside a wheelbarrow at a palm oil plantation in Kuala Selangor, Selangor, Malaysia April 26, 2022. (Photo: Reuters)
Hanoi (VNA) - Indonesia and Malaysia have said thatthey could stop exporting palm oil to the European Union in response to a new EUlaw aimed at protecting forests by strictly regulating the sale of palm oilproducts.
According to CNN Indonesia, environmentalactivists blame the palm oil industry for rampant clearing of Southeast Asianrainforests, though Indonesia and Malaysia have created sustainabilitycertification standards mandatory for all plantations.
Malaysian Deputy Prime Minister and Commodities Minister Fadillah Yusof said Malaysia and Indonesiawill discuss the law, which bans sale of palm oil and other commodities linked todeforestation unless importers can show that production of their specific goodshas not damaged forests.
Talkingto media on January 12, Fadillah urged themembers of the Council of Palm Oil Producing Countries (CPOPC) to work togetheragainst the new law and to combat baseless allegations made by the EU and USabout the sustainability of palm oil.
In their talks on January 9, Indonesian President Joko Widodoand Malaysian Prime Minister Anwar Ibrahim agreed to fight discriminationagainst palm oil and strengthen cooperation through CPOPC.
In2018, an EU renewable-energy directive required the phasingout of palm-based transportation fuels by 2030 because of their perceived link todeforestation.
According to Malaysian Palm Oil Board data, the EU is theworld's third-largest palm oil consumer. It accounts for 9.4% of palm oil exports fromMalaysia./.
Malaysia’s trade turnover witnessed a record high in June, hitting 270.39 billion RM (over 60.6 billion USD), up 43.4% year-on-year, which is a clear sign of strong and flexible development of the country’s economic foundations.
Malaysia’s palm oil potential remains intact despite softening crude palm oil (CPO) prices, and its prospects will remain bright in the second half of this year, according to Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin.
Indonesia has extended its zero-levy policy for palm oil exports until October 31, the Coordinating Ministry for Economic Affairs announced on August 29.
Although the Government of Malaysia has opened the border since April 1 and encouraged the recruitment of foreign workers, the continued labour shortage is seriously affecting the country’s palm oil industry.
Indonesia, the world’s biggest palm oil producer, is about to cut its overseas shipments of the commodity, as it tightens a policy requiring companies to keep more supply at home.
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Fresh fruit bunches of oil palm tree are are seen inside a wheelbarrow at a palm oil plantation in Kuala Selangor, Selangor, Malaysia April 26, 2022. (Photo: Reuters) 
