PETALING JAYA: Malaysia and Indonesia will file an official complaint to World Trade Organisation (WTO) if the European Commission adopts European Parliament’s resolution on palm oil and deforestation as its official policy.
European Parliament’s resolution on palm oil is seen as discriminatory to palm oil industry, said Minister of International Trade and Industry Datuk Seri Mustapa Mohamed.
“We cannot lodge a joint complaint to WTO now. Malaysia and Indonesia will only have the right to do so if and when the resolution to discriminate against palm oil becomes the EU’s official policy,” he said.
Last week, in a joint statement, Mustapa announced MITI and Indonesia's Trade Ministry’s intention to file a complaint with the WTO on the EU's discriminatory stance on palm oil.
The EU resolution on deforestation and the ongoing defamatory labelling of palm oil by food companies and supermarket chains in Europe is hurting palm oil sales from Malaysia and Indonesia.
Malaysia and Indonesia supplies around 60 million tonnes of palm oil which make up 86 per cent of global output.
Both countries are poised to exercise their trading rights because it affacts the livelihoods of some five million smallholders cultivating oil palms in the region.
“This is a deep concern for us. The cabinet has deliberated on the EU’s protectionist stance against palm oil. I’ve taken this serious matter to the Asean level, too. We, at MITI, are working hard to dismantle trade barriers,” said Mustapa.
Two weeks ago, France’s Environment Minister Nicolas Hulot announced his country will begin taking steps to restrict the use of palm oil in producing biofuels.
Hulot reportedly said France wants to stop "imported deforestation" and simply alleged Asia and Latin America's cultivation of oil palms and soyabean is not eco-friendly.
Mustapa noted Hulot’s painting palm oil in the negative light effects the bilateral relations between Malaysia and France.
Recently, a newswire report stated that Malaysia’s Defence Ministry had put on hold a US$2 billion plan to purchase Rafale fighter jets built by Dassault Aviation SA as the country is looking to focus more on maritime patrol aircrafts rather than multi-role combat aircrafts.
Asked if Malaysia’s purchase deferment of French fighter jets is a tit-for-tat move to France’ announcement to boycott palm biodiesel, Mustapa replied, “I’m not in the loop of defence equipment procurement. So, I’m not able to confirm or deny that news report.”
Mustapa was speaking to reporters opening the 3rd National Economic Summit 2017 jointly organised by Asian Strategy & Leadership Institute (ASLI) and Malaysian Economic Association (MEA) here today.
Also present were ASLI chief executive officer Tan Sri Dr Michael Yeoh, ASLI Director Tan Sri Ramon Navaratnam, MEA past president Tan Sri Mohd Sheriff, MEA deputy president Datuk Latifah Merican Cheong and Sunway Group exco member Puan Sri Susan Cheah.