Gov't urged to step up efforts against EU palm oil ban

Four bodies – representing some 650,000 smallholders and over five million dependents – are urging Putrajaya to halt all trade negotiations with Europe pending resolution of the European Union's proposed ban on the use of palm oil as biofuel by 2020.

Felcra Bhd chairperson Nageeb Ahmad Abdul Wahab said that this was decided during the agency's first-ever meeting with the heads of Felda, Risda and the National Organisation of Smallholders (Nash) today.

"First of all, we (Malaysia) are in the midst of negotiating a free trade agreement with the EU. 

"So we are requesting that the government put the negotiations on hold until the issue of the palm oil ban is resolved.

"The second thing we are asking for is that for now, and even until a decision is made on the ban, all negotiations on any contracts or business dealings with Europe should be stalled," he said during a press conference at the Felcra office in Kuala Lumpur.

'Go on the offensive'

According to Nageeb (photo), Putrajaya's efforts to convince the EU on the sustainability of Malaysian palm oil, as well as to counter propaganda on the alleged impact of plantations on the environment, appear to have fallen on deaf ears.

"So the only way to approach this matter now is through political and economic means. We need to be aggressive, we need to be on the offensive.

"We have been very diplomatic, we have been very tactful, we have been very nice when dealing with this matter. Enough is enough for us now."

Nageeb said that demand for palm oil from Europe amounted to 7.5 million tonnes last year. Malaysia, he added, stands to lose out on the three million metric tonnes – 40 percent of the total – which is used as biofuel.

Malaysia and Indonesia currently rank as the world's top two palm oil producers, accounting for about 85 percent of the estimated 70 million tonnes produced worldwide.

Nageeb, meanwhile, said the four bodies also agreed to submit a joint petition to the EU delegation in Malaysia on the impact of the palm oil ban on smallholders and their families.

He lamented that while the plight of orangutans allegedly killed by deforestation has been played up, little attention has been afforded to the suffering of smallholders and their families.

It was previously reported that Putrajaya will present legal and technical arguments this week against the EU plan to limit the use of palm oil, opposing a move that could lead to an eventual ban.

The European Commission last month said the use of palm oil in motor fuel should be phased out because oil palm cultivation led to deforestation. The move is part of the EU's climate goals. - Mkini