Malaysia has won a lawsuit at the World Trade Organization (WTO) against the European Union’s (EU) discriminatory measures against palm oil-based biofuel products.
Malaysian Plantations and Commodities Minister Johari Abdul Ghani in a media statement issued in Putrajaya on Wednesday said the EU agreed to comply with WTO provisions before determining a ban on receiving palm oil-based biofuels from Malaysia.
The Malaysian government, he said, would closely monitor the EU’s changes to its regulations to be made in line with the WTO findings, and pursue the compliance process when necessary.
He said the Malaysian government remains fully committed to defending the interests of palm oil biofuel industry players against trade barriers and discrimination.
On Tuesday (5/3), the WTO Panel issued its Final Report and conclusion that the EU rules restricting palm oil biofuels are discriminatory.
The WTO ruling shows that Malaysia’s claims of discrimination were correct. It proves the country’s efforts to uphold justice for traders, companies and employees of palm biodiesel producers, he said.
According to him, the WTO Final Report clearly found fault with EU rules in using indirect land use change (ILUC) to ban biofuels from palm oil. The report also found fault with the EU’s approach in informing and consulting with other countries when it comes to new trade rules.