KUALA LUMPUR – The government has urged the European Union to address the concerns of Malaysia and the entire palm oil sector effectively and expeditiously after the bloc’s member states voted to approve the negotiated deal on the EU Deforestation Regulation (EUDR).
“The regulation is a deliberate effort to increase costs and barriers for Malaysia’s palm oil sector, including the more than 450,000 smallholders.
“This ultimately would increase poverty, reduce household incomes, and harm rural communities in Malaysia, outcomes that stand in stark contrast to the EU’s commitments outlined in the United Nations’ Sustainable Development Goals,” said Deputy Prime Minister I Datuk Seri Fadillah Yusof.
Fadillah, who is also plantation and commodities minister, said it is disappointing to witness the EU withdrawing from the global marketplace and erecting protectionist barriers.
“This move is woefully misguided, especially as the Asean and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) groupings are gaining in influence and attracting new partners from around the world,” he said in a statement today.
Fadillah added that the EUDR is unjust and serves primarily to protect a domestic oilseeds market that is inefficient and cannot compete with Malaysia’s efficient and productive palm oil exports.
Nevertheless, he said Malaysia remains open to engagement with the EU to address these concerns.
“The EU must now commit to genuine involvement for both governments and industries from producing countries, including as part of the ongoing deforestation platform,” he said.
Fadillah said Malaysia restates its core position that an exemption for small farmers is needed in the EUDR to prevent large European importers from cutting smallholders out of supply chains.
The EU should also commit to not classifying Malaysia as a “high-risk” country nor pursue a jurisdictional approach.
“The designation of Malaysia as high-risk is unjustified. Malaysia has made, and kept, world-leading commitments to forest conservation and sustainable agriculture that have been recognised by leading global institutions such as the UN Food and Agriculture Organisation and the World Bank,” he said.
He added that the EU should acknowledge the benefits of the Malaysian Sustainable Palm Oil (MSPO) standard – a mandatory sustainability certification – and recognise it as a path to compliance with the EUDR. – Bernama, April 20, 2023
