EU deforestation rules seen as discrimination against Malaysia’s palm oil industry
The European Union Deforestation-free Regulation (EUDR) and other related regulations have been criticised for discriminating against Malaysia’s palm oil industry. Deputy Prime Minister Fadillah Yusof claims that these regulations, along with the European Green Deal, aim to restrict the entry of Malaysian products into the European market. He argues that Malaysia’s palm oil industry is more productive and progressive compared to European counterparts such as soy oil production.
Fadillah explained that European soy oil cultivation requires larger land areas for production and involves disposing of the produce and replanting for results. In contrast, Malaysian palm trees can produce oil for up to 25 years, resulting in lower costs. He suggests that Europe has introduced these regulations to make Malaysian business costs more expensive and maintain competitiveness.
Fadillah, who is also the Plantation and Commodities Minister, said that he had discussed this issue with his Indonesian counterpart, as the discriminatory practice would also impact Indonesia’s oil palm industry. They agreed that Indonesia, as the current ASEAN chairman, should bring the matter to the level of ASEAN discussion.
Recently, Fadillah and Indonesia’s Coordinating Minister for Economic Affairs, Dr Airlangga Hartarto, participated in a joint mission to the European Union (EU) to protect the interests of both countries’ palm oil sectors. This mission was conducted under the Council of Palm Producing Countries (CPOPC). Indonesian President Joko Widodo, during a recent working visit to Malaysia, also emphasised the need for closer collaboration between the two nations in opposing palm oil discrimination.
