Malaysia files WTO lawsuit against EU on palm-biofuel curbs
Malaysia has recently filed a complaint with the World Trade Organisation (WTO) over the European Union (EU)’s rules affecting the consumption of palm oil-based biofuels.
Malaysia is the world’s second largest producer of palm oil. (Photo: Reuters)
Kuala Lumpur (VNA) – Malaysia has recently filed a complaint withthe World Trade Organisation (WTO) over the European Union (EU)’s rulesaffecting the consumption of palm oil-based biofuels.
In the complaint, dated January 15, Malaysia charges that the EU, particularlyits member states such as France and Lithuania, had imposed restrictivemeasures on the use of palm oil that violate international trade agreements.
Malaysia holds that the bloc and its members confer unfair benefits to EUdomestic producers of certain biofuel feedstocks such as rapeseed oil and soy,and the biofuels produced therefrom at the expense of palm oil and oil palmcrop-based biofuels from Malaysia.
The EU has embarked on a major plan committing its members to build a carbonneutral economy by 2050, including by promoting the use of biofuels. However,it has deemed that palm oil production is not sustainable and palm oil-basedbiofuels cannot be counted towards EU renewable targets.
Malaysia, the world’s second largest producer of palm oil, baulked at EUefforts to phase out the use of palm oil as a biofuel, and has requestedconsultations to help resolve the dispute./.
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Malaysia is the world’s second largest producer of palm oil. (Photo: Reuters) 
