Malaysia is reviewing its trade with the European Union following the bloc’s move to back a ban on using palm oil to make biofuels, the Deputy Prime Minister was reported as saying on Sunday (Jan 28).
European Parliament has approved a legislation package to meet ambitious climate goals. The plan includes a ban on the use of palm oil in motor fuels from 2021. The legislation process in not finalised now negotiations will start with the European Council to find a common ground between the Parliament and the Council.
Indonesia and Malaysia, which produce nearly 90 per cent of the world’s palm oil, called the move discriminatory and said there should be fair treatment for all vegetable oils.
Datuk Seri Ahmad Zahid Hamidi said Malaysia was reviewing the purchase of products from EU nations, state news agency Bernama reported. The matter was decided during a Cabinet meeting last week chaired by Prime Minister Najib Razak, he was quoted as saying in his speech given to community members in the northwestern state of Perak.