Netherlands opposes EU palm oil ban

KUALA LUMPUR: The Netherlands has joined a few other European Union (EU) countries opposing the proposed ban on palm oil by the European Parliament.

Netherlands Minister of Foreign Trade and Development Cooperation Sigrid Kaag said the country did not support discriminatory measures or differentiation between products and called for a dialogue on the palm oil issue.

“Nobody should be penalised, alternatives need to be created and we need to be discussing this in a proper format where there is full understanding of the local situation and what the global market development can deliver,” she told reporters on the sidelines of the Dutch Approach to Innovation and High-Tech Development Seminar here yesterday.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed was present.

The European Parliament resolution on Jan 17 calls for the phasing out of palm oil from the EU biofuel programme by 2020 because it results in the destruction of forests

So far France, Sweden and the UK (Conservative MPs -part of the governing party of UK Prime Minister Theresa May) spoke against the resolution.

Kaag said the Netherlands commended Malaysia’s efforts in the transitioning of palm oil towards sustainability without undermining the livelihood of smallholders.

“Sustainable development is one of win-win for everybody. There can’t be winners and losers and we need to construct this together,” she said.

Mustapa said a meeting would be held between him, Kaag and Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong today to further discuss the issue.

“This is a very critical industry to us and we do not want any discrimination on our palm oil. Sustainability is very important to us,” he said.

Over the past year, the European Parliament, accusing palm oil producers of deforestation, has twice voted in favour of resolutions that, if implemented, would restrict palm oil imports to the bloc.

Last month, members of the European Parliament voted for a total ban on palm oil in biofuels by 2021, while in April 2017 they requested the EU phase out the use of vegetable oils that drive deforestation by 2020.

Meanwhile, Mustapa said his meeting with Kaag also touched on the possibility of relaunching the Malaysia-EU Free-Trade agreement (FTA) this year, as well as recent developments on the multilateral front.

He said the revival of the negotiation, which halted in 2012, was mooted during his visit to the Netherlands last October.

Without setting a timeline to revive the negotiation, he said two main factors would be the reasons for the revival – the conclusion of the FTA between EU and other countries in the region and the huge presence of European companies in Malaysia.

“It makes great sense for us to come on board on this EUMalaysia FTA,” he said.

Kaag said the Netherlands fully supported the resumption of negotiations for the FTA between Malaysia and the EU for the benefit of both parties.

“In a world where protectionism nowadays risk undermining free and open trade, it is very important we continue to negotiate the free-trade agreement in the interest of EU and Malaysia,” she said.

She said the agreement should create a win-win situation and sustainability for both countries.

“Joint efforts to achieve a broader agenda are equally important and we can only do this if we do this together on the basis of shared agenda and agreed outcome,” she added.

In 2017, Malaysia’s trade with Netherlands reached RM34.8 billion, of which 77.4 per cent was contributed by exports.

Malaysia’s exports to the Netherlands grew 22.7 per cent, while imports increased by 11.7 per cent.

From investment point of view, Malaysia approved 337 projects worth RM27.3 billion with the participation of Dutch companies as at September 2017, making the Netherlands Malaysia’s second largest EU investor after Germany.

These investments are in key sectors such as electrical and electronics, petroleum products, food manufacturing, and chemicals and chemical products.

Besides the RM3.18 billion Global Business Services Centre established by Shell in the capital, a number of Dutch companies have chosen Malaysia to set up their regional establishment, including Benchmark Electronics, Mylaps BV and Kraton Polymers BV. — Bernama