KUALA LUMPUR, Dec 23 — Malaysia, being a major commodity-producing country, is deeply concerned about the European Union (EU) Deforestation-Free Products Regulation targeting commodities such as palm oil, timber, cocoa, and rubber, said Deputy Prime Minister and Minister of Plantation and Commodities Datuk Seri Fadillah Yusof.
He said the regulation was a unilateral initiative by the EU that is detrimental to free and fair trade, which could result in adverse impacts on the global supply chain.
“Some aspects of the risk-assessment process of the regulation are counter-productive to commitments to curb global deforestation and run the risk of disincentivising producing countries,” Fadillah said in a statement today.
He said Malaysia underscored the need for a balanced approach between achieving development goals and climate ambition, and the 2030 Sustainable Development Goals remain the utmost priority for the nation.
“We have embarked on sustainability initiatives including national certification schemes, such as the Malaysian Sustainable Palm Oil (MSPO) certification scheme, Malaysian Timber Certification Scheme and Sustainable Forest Management practices, with a view to facilitating access into the EU Single Market,” Fadillah said.
The Deputy Prime Minister said the EU regulation would place additional burdens on Malaysian palm oil exporters to the EU market, specifically the requirement for additional traceability requirements and data that must be provided to end-customers based in the bloc.
“Countries will be ranked as ‘high risk’, ‘standard risk’ or ‘low risk’ and restrictions on commodities will be either more or less stringent, based on this ranking,” he said.
Fadillah said the Deforestation-Free Products Regulation was a deliberate act by Europe to block market access and would hurt small farmers and protect the EU’s domestic oilseeds market that is inefficient and cannot compete with the cost of palm oil.
Moreover, he said, this regulation could lead to higher food prices and reduced output at a time of record global inflation.
“Europe’s justifications for promoting this regulation are based on unsound reasoning and have a weak scientific basis.
“Malaysian palm oil is sustainable and is one of the most certified vegetable oils in the world today. The MSPO standard already guarantees Malaysia’s commitment to comprehensive sustainability standards,” Fadillah said.
He added that Malaysia will continue to provide sustainable and deforestation-free palm oil to European and global customers and there was no need to add further costs and burdens.
“It would be offensive to Malaysia if either palm oil, or the country, is designated high risk by the EU Regulation. There is no justification for it,” Fadillah said.
He pointed out that adding unnecessary regulations on palm oil exacerbates the current food supply crisis, increases food and energy costs, would harm both European and Malaysian economies, and undermines poverty alleviation efforts.
“The EU must commit to genuine engagement with producing countries. Malaysia values the EU as one of its important trading and investment partners.
“We stand ready to further enhance this mutually-beneficial partnership, especially building on the recent signing of the Malaysia-EU Partnership and Cooperation Agreement as well as a possible resumption of Malaysia-EU Free Trade Agreement negotiations,” Fadillah said.
— Bernama
