KUALA LUMPUR: Malaysia has won a case against the European Union (EU) over the Delegated Act that discriminates against palm oil biofuels produced in the country, said Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani.
He said the World Trade Organization (WTO) panel, had on March 5, 2024, issued its final report and concluded that the EU’s Delegated Act, which restricted palm oil biofuels, is discriminatory.
"This ruling from WTO demonstrates that Malaysia’s discrimination claims are justified. This vindicates Malaysia’s pursuit of justice for our biodiesel traders, companies and employees,” he said in a statement today.
Johari said the WTO final report finds fault with the EU’s use of indirect land use change (ILUC) to ban palm oil biofuels.
He said it also finds fault with the EU’s approach to notifying and consulting with other economies when introducing new trade measures.
"The EU has agreed to comply with the WTO ruling before it can impose restrictions in accepting Malaysia’s palm oil biofuels,” said Johari.
He noted that the Malaysian government will closely monitor the EU’s changes to its regulations to bring them in line with the WTO’s findings and pursue compliance proceedings if necessary.
"The government remained fully committed to defending the interests of palm oil biofuels industry players against trade barriers and discrimination,” said the minister.
To recap, Malaysia, a major palm oil producer, had on Jan 19, 2021, requested WTO dispute consultations with the EU regarding measures adopted by the bloc and its member states affecting palm oil and palm crop-based biofuels. - Bernama
