Govt urged not to revive free trade talks with EU
KUALA LUMPUR: Malaysian palm oil producers have urged the government not to revive free trade agreement (FTA) talks with the European Union in view of its move to boycott palm biodiesel.
Oil palm planters have rejected the European Commission’s move to classify palm oil as a high indirect land-use change risk and exclude palm oil from the EU Renewable Energy Directive II mandate.
“We have been very diplomatic and tactful when dealing with this matter, but enough is enough,” said Felcra Bhd chairman Datuk Mohd Nageeb
Abdul Wahab, here, yesterday
“The only way to approach this matter is through political and economic means,” he said, adding that Indonesia, the world’s largest palm oil producer, shared the same view in responding to the EU plan to exclude palm biodiesel.
The EU-Malaysia FTA negotiation was initiated in 2010 but was set aside in 2012. Ambassador and head of EU delegation to Malaysia Maria Castillo Fernandez had at time and again expressed interests to revive the trade talks.
“Malaysia should not have any FTA talks with the EU unless and until the EC stops discriminating against palm oil,” said Nageeb.
He said four groups of oil palm smallholders would jointly submit a protest memorandum to the Commission concerning its discriminatory biofuel policy that would hurt the livelihoods of Malaysia’s 650,000 oil palm smallholders.
The four are Felcra Bhd, Federal Land Development Authority, Rubber Industry Smallholders Development Authority and Malaysian National Association of Smallholders.
The EU buys 7.5 million tonnes of palm oil per year from Indonesia and Malaysia.
Out of the 7.5 million tonnes, 40 per cent, or three million tonnes, are palm biodiesel.