Former minister says US palm oil ban based on old complaint

 

Former primary industries minister Teresa Kok has urged the United States Customs and Border Protection (CBP) to send an investigative team to Malaysia to probe the labour practices of Malaysia's oil palm plantation giant FGV Holdings.

Kok, who is the Seputeh MP, cited the ban against palm oil and palm oil products from FGV as "unreasonable" and "based on an old issue".

This came after the US banned the import of palm oil from FGV over allegations that it used forced labour in the production process.

The CBP had stated that the ban was enforced after a year-long investigation that revealed forced labour indicators such as abuse of the vulnerable, deception, physical and sexual violence, intimidation and threats, retention of identity documents, and the potential exploitation of child labour.

However, Kok defended FGV, arguing that the company had taken various concrete steps to address the complaints.

"The withhold release order (WRO) issued by the United States Customs and Border Protection (CBP) against palm oil and palm oil products from FGV is most unreasonable as the incident concerned happened in 2015 based on a complaint by an NGO against one of its contractors," she said.

'Best labour practices'

According to Kok, FGV, one of Malaysian leading public-listed agribusiness companies, "has since, duly implemented and continues to vigorously observe best labour practices, in accordance with international standards".

Kok added that FGV had also implemented a long-term, comprehensive action plan under its affiliation to the Fair Labour Association to strengthen various aspects of its labour practices, as well as adopting a Supplier Code of Conduct.

The former minister asked whether CBP had evaluated FGV's current labour practices when it issued the ban.

"Or has it wilfully acted on an old complaint by NGOs five years ago? If it is the latter, then it will be most unfair and unconscionable of the US CBP to have acted in this rash manner," said Kok.

"I would like to urge the US CBP to send a special investigative team to Malaysia to inquire into the labour practices of FGV…

"So that its decision won't be seen or criticised as practising double-standards and victimising companies in third world countries."

'Important milestone'

Meanwhile, Grant & Eisenhofer ESG Institute, a US-based legal NGO, in a statement said its petition, which led to the ban, had "helped focus much-needed attention on the forced labour and human suffering associated with the Malaysian palm oil industry."

Grant & Eisenhofer law firm director Olav Haazen, who filed the petition with the CBP for the firm's ESG Institute, cited the ban as an important milestone in combating forced labour in the palm oil industry.

"We're gratified that the US government, by issuing a withhold release order against FGV, acknowledges the seriousness of this problem. Bringing it to the US Customs and Border Protection's attention through the petition was our main objective." - Mkini