Both Malaysia and Indonesia expressed deep disappointment on the unfair treatment by the EU on Palm Oil in favour of other vegetable oils and commodities which also contribute significantly to deforestation.
This EU resolution as well as the unfair labelling practices by the private sector in the EU will adversely affect not only exports of palm oil from Malaysia and Indonesia to the EU market but also the livelihood of millions of small holders.
Datuk Seri Mustapa Mohamed, Minister of International Trade and Industry, Malaysia and Enggartiasto Lukita, Minister of Trade, Indonesia, who met in Kuching, Sarawak, Malaysia on 13 July 2017 in conjuction with the 3rd Malaysia – Indonesia Joint Trade and Investment Committee meeting, made the joint statement after discussing the European Union (EU) Resolution on Palm Oil and Deforestation of the Rainforest.
Malaysia and Indonesia will be working together to enhance cooperation under the ambit of the Council of Palm Oil Producing Countries (CPOPC). Malaysia and Indonesia are expected to meet at the end of July 2017 to discuss and coordinate issues related to palm oil including a joint CPOPC mission to Europe to engage with relevant parties and stakeholders.
Further, Malaysia and Indonesia will consider taking this issue to the World Trade Organisation (WTO), if the Resolution becomes an EU Directive and discriminatory in nature.