PUTRAJAYA: The European Union Parliament's vote to ban palm biodiesel from January 2021 is a ‘Black Day’ for free trade, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said.
“It’s a Black Day for free trade because the EU Parliament’s vote late last night is a barrier to palm oil trade,” Mah told reporters on the sidelines of a seminar organised by the Malaysian Palm Oil Board here today.
He explained that the EU’s discriminative action is protective of its homegrown rapeseed and sunflower oils. But it will harm the livelihoods of more than three million farmers cultivating oil palms across developing nations.
“This morning, I have written to Malaysian ambassadors in the EU to convey our disappointment on the EU Parliament’s vote. The EU is practising a form of crop apartheid,” Mah said.
“The EU Parliament’s vote is in breach of the EU’s commitments to the World Trade Organisation. It negatively impact European trade and cooperation in Malaysia and Southeast Asia.”
“We urge the European governments and the Council of the EU to reject the EU Parliament’s vote to ban palm biodiesel because this would harm bilateral trade, job creation sand strategic interests in Southeast Asia,” he added.
Mah said Malaysia will not tolerate defamatory actions towards the palm oil industry. “Malaysia will take corrective action on those who harm palm oil reputation.”
Oil palm farmers subscribe to good agricultural practices and this is reflected when their estates are accorded the Malaysian Sustainable Palm Oil (MSPO) certification by the government.
“This year we target some two million hectares of oil palm area to be MSPO-certified,” he said, adding that the government-driven certification assures consuming countries that Malaysia produces palm oil on a balanced need of People, Profits and Planet.
On trade promotion, Mah said under the Budget 2018, the government had allocated additional RM30 million to promote palm oil in new markets like Iran, Vietnam and the Philippines.