16/11/2012 (The Star) - Land Development Minister Tan Sri Dr James Masing has claimed that the French legislature’s proposal to increase tax on palm oil by 300% was influenced by economic rivalry, and not by health issues.

He said European countries and the United States’ stand on palm oil was always related to trade interests or protection of their own vegetable oil industry.

He said other vegetable oil producing countries always felt threatened by the continuous increase in Malaysia and Indonesia’s production and export of palm oil.

“When we become a threat to these countries, they will find ways to sabotage palm oil.”

According to an international news agency report, senators in France (where a left-wing government is hiking tax generally to help slash a bloated debt) have proposed a 300% tax hike on palm oil on the grounds that its production harms the environment and its consumption causes obesity.

Masing said even the US had blamed palm oil, but eventually found itself incorrect.

“Palm oil has been proven to be better than other vegetable oil and healthy for human consumption.”

Masing said the 300% tax rise, if passed on, would adversely affect the palm oil industry.

“To me, it is not a very good move because it will promote unfair trade practices across the globe,” he said.

“They are turning economic rivalry into environmental and health issues, which should not happen.”