WTO agrees on panel to relook EU palm oil rules
31.05.2021 (www.freemalaysiatoday.com) - KUALA LUMPUR: The World Trade Organisation (WTO) agreed to a request from the Malaysian government to establish a panel examining a European Union law that restricts the use of palm oil-based biofuel, Putrajaya said today.
Under the EU’s renewable energy directive, palm oil-based fuels are to be phased out by 2030, since palm oil has been classified by the bloc as resulting in excessive deforestation and can no longer be considered a renewable transport fuel.
Palm oil producers say some EU member states have started to phase it out ahead of the deadline.
Malaysia, the world’s second-largest palm oil producer, and bigger rival Indonesia, have in recent years launched separate cases with the WTO, saying the EU measures are discriminatory.
“Malaysia will remain committed to pursuing legal action against the EU,” plantation industries and commodities minister Khairuddin Aman Razali said. Malaysia and Indonesia together produce 85% of the world’s palm oil.
In a statement, Khairuddin said the WTO had on Friday acceded to a second request from Malaysia that a panel be set up. The application was made since consultations with the EU on March 17 failed to yield a solution, he said.