SINGAPORE: There are no sanctions on palm oil, says European Union (EU) Trade Commissioner, Cecilia Malmström.
“There are no new regulations in place. In fact, the EU’s import of palm oil grew by 20 per cent last year,” she said at a press conference after the 16th ASEAN Economic Ministers-EU Trade Commissioner Consultations here today.
Malmström said what was discussed in the media and by some non-governmental organisations was one particular phrase in the amendment by the European Parliament in a law that had yet to enter into force.
“In fact, we had discussions. In fact, we had very open and frank discussions with our friends from Malaysia and Indonesia.
“I met the ministers here and I updated them with the legislative proposals, and it is not the final outcome by the European Parliament,” said Malmström, the head of an EU delegation here.
Earlier, Malaysia’s International Trade and Industry Minister Datuk Seri Mustapa Mohamed said he had a chance to meet with Malmström yesterday and raised the issue of the EU’s proposal to phase out palm oil-based biofuels.
Mustapa was here for the 24th ASEAN Economic Ministers’ Retreat and Related Meetings.
“As I said, there is no ban, no sanction and trade is flourishing on this. Of course, we work jointly on the sustainability of this product, a very important part of the economy for Malaysia and Indonesia.
“We will try to do so and we have important projects that we are supporting. I know both countries are working on this issue,” said Malmström.
In January, the European Parliament voted in favour of a draft law on renewable energy that called for the use of palm oil in biofuels to be banned from 2021.
The EU reasoned that the widely-used commodity would derail Europe’s ambitions to green its transport sector if used as biodiesel.
As the world’s top exporters of palm oil, both Malaysia and Indonesia will be greatly affected by the move.
The EU is the second-largest palm oil export market for the two countries.