Malaysia and Indonesia, the world’s two largest producers of palm oil, have decided to unite against a new deforestation bill in the European Union, as it affects the supply of this product.
The Malaysian newspaper The Star reported that Malaysia and Indonesia considered the bill unreasonable and spoiled trade relations with the European Union.
The newspaper quotes Malaysian Commodity Minister Fadila Yusuf as saying: “Palm oil is the cheapest oil in the world. Therefore, the agile measures taken by the European Union constantly act as a trade barrier to protect their products.”
She added that Malaysia is actively discussing with Indonesia the possibility of completely cutting off the supply of palm oil to the European Union.
Earlier, the European Union announced that it intends to limit the supply of palm oil if the products do not have a certificate “without deforestation” in the oil production process.
Source: News
