Malaysia takes WTO authorized motion towards EU over palm biofuel curbs

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This image taken on February 13, 2019 reveals a employee trimming leaves on a newly created dwarf palm oil tree on the Malaysian Palm Oil Board (MPOB) analysis station in Bukit Lawiang in southern Johor state.

Mohd Rasfan | AFP | Getty Photographs

Malaysia is taking authorized motion on the world commerce watchdog towards the European Union and member states France and Lithuania for limiting palm oil-based biofuels, the federal government mentioned.

The world’s second largest palm oil producer, which has referred to as a EU renewable-energy directive “discriminatory motion,” is searching for consultations underneath the World Commerce Group’s Dispute Settlement Mechanism, the Plantation Industries and Commodities Ministry mentioned in an announcement on Friday.

Minister Mohd Khairuddin Aman Razali mentioned the EU proceeded with implementing the directive with out contemplating Malaysia’s dedication and views, even after Malaysia gave suggestions and despatched financial and technical missions to Europe.

The EU directive “will imply the usage of palm oil as biofuel within the EU can’t be taken under consideration within the calculation of renewable vitality targets and in flip create undue commerce restrictions to the nation’s palm oil business,” he mentioned within the assertion.

The ministry filed the WTO request with cooperation from the Legal professional Normal’s Chambers and the Worldwide Commerce and Trade Ministry, taking motion it had warned of in July towards EU Renewable Vitality Directive II.

Malaysia will act as a 3rd social gathering in a separate WTO case lodged by neighboring Indonesia, the world’s largest palm oil producer, as an indication of solidarity and assist, the ministry assertion mentioned.