BALING: Malaysia and Indonesia have reached an understanding to discuss the European Union (EU) discriminatory trade practices against palm oil at the Association of Southeast Asian Nations (Asean).
Deputy Prime Minister Datuk Seri Fadillah Yusof said Indonesia, as the current chair of Asean, had agreed on the matter.
"This is part of the ongoing joint effort between Malaysia and Indonesia to fight any discriminatory trade practices against the agricommodity sector in both nations," he said after meeting rubber smallholders in Kampung Charok Garok here under the ministry's Trek Community Programme for the northern states.
Fadillah, who is also the Plantation and Commodities Minister, added that Malaysia and Indonesia would continue ongoing engagements with the EU to defend the palm oil industry following the implementation of the European Union Deforestation Regulation (EUDR).
He said a senior EU official would be visiting Malaysia and Indonesia next week for further engagement on the issue.
"We will discuss with the EU official, in line with our stand that there should be engagements so that any guideline to be issued by EU must only be done after taking into account our views," he said.
The visit is a follow up to Malaysia-Indonesia joint trade mission to the EU last month to defend the palm oil industry following the implementation of the European Union Deforestation Regulation (EUDR).
Fadillah had led the Malaysian delegation while Indonesia was represented by its Coordinating Minister for Economic Affairs, Dr Airlangga Hartarto.
Together, Indonesia and Malaysia account for about 85 per cent of global palm oil exports.
The EU accounts for 9.4 per cent of Malaysia's palm oil export volume or 1.47 million tonnes.
Fadillah also said that this agricommodity in Malaysia was far more competitive compared to oils produced in European nations.
"For example, soy oil requires a large scale of land to produce oil and they will have replanting for every cycle, whereas our oil palm trees has a production lifespan of up to 25 years," he said.
Fadillah's comments came in the wake of Indonesian President Joko Widodo's call for better collaboration between Indonesia and Malaysia to fight discrimination against palm oil products produced by both nations.