The world’s largest producers of palm oil, Malaysia and Indonesia, have decided to unite against the new EU deforestation bill affecting the supply of this product, the Malaysian newspaper Star reports, RIA Novosti writes.
Earlier, the European Union announced that it intends to limit the supply of palm oil if the products do not have a certificate of no deforestation in the production process. According to the publication, Malaysia and Indonesia considered the bill unreasonable and spoiling trade relations with the European Union. “Palm oil is considered the cheapest oil in the world. Therefore, the constantly maneuvering measures of the EU look like a trade barrier to protect their own products. Right now, the World Trade Organization should have intervened, ”the newspaper quotes Malaysian Commodity Minister Fadilla Yusof as saying. He added that Malaysia is actively discussing with Indonesia the possibility of completely stopping the supply of palm oil to the European Union. “One option is to stop exporting to Europe and focus on other countries if the EU continues to interfere with us,” the minister said.