FILE PHOTO: A worker unloads palm oil fruits from a lorry inside a palm oil factory in Salak Tinggi, outside Kuala Lumpur August 4, 2014.l (Source: REUTERS) Hanoi (VNA) – Malaysian Minister of Primary Teresa Kok said on July 16 that thecountry will lodge a complaint with the World Trade Organisation (WTO) over theEuropean Union's plan to phase out the use of palm oil in biofuels.
As theworld's second biggest palm oil producer after Indonesia, Malaysia would be hithard by the EU's plan to cut its use in biofuels by 2030.
"Malaysiawill file a WTO complaint... hopefully by November," the minister toldAFP.
Theattorney-general's office was working on the complaint and Malaysia hoped tocooperate with Indonesia in the case, she said.
Palm oil is amajor ingredient in a wide range of products from food to cosmetics but it haslong been controversial as environmentalists say it drives deforestation, withhuge swathes of rainforest logged in recent decades to make way forplantations.
Its use infood and cosmetics has already dropped in Europe, partly due to pressure fromgreen groups on major corporations, but has been increasing in biofuels.
In March, MalaysianPrime Minister Mahathir Mohamad slammed the EU move to curb palm oil inbiofuels, saying it risks opening up a trade war with Malaysia.
He has alsowarned of retaliation by buying new fighter jets from China instead of France'sRafale jet or the Eurofighter Typhoon.
Last week,Indonesian President Joko Widodo promised to fight the EU's plans, tellingBloomberg News that palm oil is a strategic commodity for Indonesia.-VNA
VNA
