Malaysia and Indonesia, the world’s two leading palm oil producers, have decided to unite against a new deforestation bill in the European Union, as it affects the supply of this commodity.
The Malaysian newspaper Zvezda reported that Malaysia and Indonesia considered the bill unreasonable and spoiled trade relations with the European Union.
“Palm oil is the cheapest oil in the world. Therefore, the maneuvering measures taken by the European Union constantly act as a trade barrier to protect their products, ”the newspaper quotes the words of the Minister of Commodities of Malaysia, Fadila Yusuf.
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 are not certified “without deforestation” in the oil production process.