Malaysia to Initiate Legal Action Against European Union Following Anti-Palm Oil Campaign

Thursday, January 21, 2021

Malaysia’s Plantation Industries and Commodities Ministry (MPIC) has initiated legal action against the European Union (EU) and its member states France and Lithuania following their anti-palm oil measures, Bernama news reported on January 15. MPIC, with the cooperation of the Attorney General’s Chambers and the International Trade and Industry Ministry, filed on the same day a request for consultations under the World Trade Organization (WTO) Dispute Settlement Mechanism (DSM). 
MPIC minister Datuk Dr Mohd Khairuddin Aman Razali said the legal action resulted from measures taken by the EU and its member states in relation to the implementation of the Delegated Regulation of the EU Renewable Energy Directive II (RED II) which was impacting the country’s palm oil industry. He also said Malaysia would give its full commitment and cooperation in the WTO process especially in the consultative sessions and ensuing discussions with the WTO panel to be established.  At the same time, Malaysia would continue to act as the third party in the legal action filed by Indonesia vs. the EU on certain measures concerning palm oil and oil palm crop-based biofuels via DSM at WTO.

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