Malaysia and the EU continue their dispute over palm oil
Malaysia and the European Union move toward finalizing an FTA, targeting stronger trade ties beyond €46B. Key tensions remain over palm oil regulations, with Malaysia pushing back on EU restrictions while positioning itself as a sustainable, high-value supplier in global markets.
Malaysia and the European Union (EU) have begun the final stages of preparing a Free Trade Agreement (FTA). The document, which formalizes the status of a comprehensive partnership, is expected to be signed by the end of this year, but the parties still need to agree on the main provisions, according to the New Straits Times.
Current trade between the parties has already reached €46 billion. This figure is expected to skyrocket after the agreement comes into force. Brussels’ interest in Southeast Asia has grown significantly amid global instability, and the EU views the ASEAN bloc as a strategic alternative in the face of US trade protectionism and conflict in Eastern Europe.
A key topic of the negotiations was criticism of European anti-palm oil campaigns. The Malaysian side called them “discriminatory” and “lacking a scientific basis.”
Malaysian authorities insist that labeling products negatively as “containing palm oil” violates fair competition principles. More than 55% of Malaysia’s land area is covered by forests. The country does not clear virgin tropical forests for plantations, strictly adhering to sustainable production standards (MSPO). It has called on the EU to differentiate its deforestation regulations (EUDR) and recognize the high environmental responsibility of Malaysian producers.
“We are not simply exporting raw materials – Malaysia is transitioning to supplying high-value-added products. Our oil is indispensable in European industries, from food to cosmetics, and we intend to protect this market,” emphasized Foreign Minister Datuk Seri Mohamad Hasan.
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Source : Ukr Agro Consult
