Malaysia initiates WTO dispute over EU palm oil measures

This is the second dispute complaint targeting the EU's palm oil-related measures following a similar request by Indonesia in December 2019.

GENEVA: Malaysia has filed a complaint against the European Union over its palm oil measures at the World Trade Organization, the WTO website showed on Tuesday.

The complaint concerns measures by the EU and its member states France and Lithuania.

This is the second dispute complaint targeting the EU's palm oil-related measures following a similar request by Indonesia in December 2019.

On January 16 reuters reported:

Malaysia is taking legal action at the global trade watchdog against the European Union and member states France and Lithuania for restricting palm oil-based biofuels, the government said.

The world's second largest palm oil producer, which has called a EU renewable-energy directive "discriminatory action," is seeking consultations under the World Trade Organization's Dispute Settlement Mechanism, the Plantation Industries and Commodities Ministry said in a statement on Friday.

Minister Mohd Khairuddin Aman Razali said the EU proceeded with implementing the directive without considering Malaysia's commitment and views, even after Malaysia gave feedback and sent economic and technical missions to Europe.

The EU directive "will mean the use of palm oil as biofuel in the EU cannot be taken into account in the calculation of renewable energy targets and in turn create undue trade restrictions to the country's palm oil industry," he said in the statement.

The ministry filed the WTO request with cooperation from the Attorney General's Chambers and the International Trade and Industry Ministry, taking action it had warned of in July against EU Renewable Energy Directive II.

Malaysia will act as a third party in a separate WTO case lodged by neighbouring Indonesia, the world's biggest palm oil producer, as a sign of solidarity and support, the ministry statement said.

- Reuters