Mah warns of tit for tat action over EU’s palm oil threat

Plantation Industries and Commodities Minister Mah Siew Keong says Malaysia, Indonesia and Thailand will retaliate against the European Union.

KUALA LUMPUR: Malaysia, Indonesia and Thailand are ready to join forces and retaliate over the European Union’s (EU) threat to exclude palm oil from its biofuel mix and renewable energy by 2021.

The countries view the move as discriminatory and say it amounts to an attack on the palm oil industry.

Such action will affect oil palm smallholders more than anyone else, said Plantation Industries and Commodities Minister Mah Siew Keong, reiterating a major concern to palm oil producing countries.

“While we hope that it would never come to that (palm oil ban), but if it’s actually done, if our (palm oil) product is discriminated against, we can also institute the same (to the EU), because if you are unfair to our product, just remember that Malaysia, Indonesia and Thailand are also purchasers of your products.

“Negotiations and discussions are on-going to ensure it doesn’t come to that,” he told reporters after delivering his keynote address at the Reach and Remind Friends of the Industry Seminar 2018 & Dialogue here, today.

He said the Ministry of International Trade and Industry is currently negotiating a free-trade agreement (FTA) with the EU and palm oil remains on top of the agenda.

Mah was responding to the EU Parliament’s resolution on the new renewable energy directive that sought to introduce a single certification scheme for palm oil entering the EU market and the phase out of the use of palm oil-based biodiesel by 2021 on April 4, 2017.

This was followed by endorsements by the EU Parliament’s Environmental Committee on Oct 23, 2017 and Industry, Research & Energy Committee on Nov 28, 2017.

The minister said the government was not leaving any stone unturned.

“Palm oil is not only about big plantations or estates, but we are talking about small farmers who depend on oil palm for their livelihood. We are doing the best that we can in terms of environmental control and quality. So don’t penalise when we are making so much effort,” he said.

Malaysia has about 650,000 smallholders.

Meanwhile, a delegation from Malaysia is expected to meet with Members of the European Parliament (MEPs) in the first quarter of the year to discuss issues relating to palm oil, including the EU’s ban on the commodity.

The delegation will comprise members from the Malaysian Palm Oil Council (MPOC), the Malaysian Palm Oil Board and the Malaysian Palm Oil Certification Council (MPOCC).

MPOC chief executive officer Kalyana Sundram said the upcoming meeting, likely to take place either in Brussels or Malaysia, would be a platform for the delegation – the government’s technical team – to present a scientific journal titled, “Building a Sustainable Future Together: Malaysia Palm Oil and European Consumption”.

“We hope this report will become one of the documents that Malaysia will present to the EU to support the country’s case for the palm oil industry.

“This would be our first meeting for this year on the related issues and we aim to have between three and four more,” Kalyana said at the Reach & Remind, Friends of the Industry Seminar 2018. -FMT