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A Norwegian parliament recommendation to ban biodiesel "with
high deforestation risk" was included in a budget for EFTA
member Norway approved in Oslo earlier this month.
Palm oil is used as feedstock for the making of biodiesel, as
well as in everything from cookies and soap to lipstick. The
palm oil industry is often linked by environmental groups with
deforestation and displacement of wildlife and indigenous
communities.
"The stand taken by Norway against palm oil will adversely
affect bilateral trade relations between Malaysia and the
European Free Trade Association," Malaysia's primary industries
minister Teresa Kok said in a statement. Malaysia's last round
of trade negotiations with EFTA was in May 2017.
"We view this as unfair and unjust, going against free and fair
trade, and is certainly not something we will take lightly,"
said Kok, adding that it would be a major obstacle towards a
successful conclusion of partnership talks.
Last week, Kok also complained that a move by the French
parliament to exclude palm oil as an approved biodiesel
feedstock was an unwelcome decision that went against free trade
and would impact the livelihood of Malaysian farmers.
Earlier this year, Malaysia and Indonesia criticized the
European Union for backing a ban on the use of palm oil in
biofuels from 2021. Indonesia and Malaysia produce nearly 90
percent of global palm oil.
EU negotiators later agreed that palm oil usage in transport
fuels would be capped at 2019 levels until 2023, and reduced to
zero by 2030.
(Reporting by Emily Chow; Editing by Kenneth Maxwell)
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