Malaysia threatens WTO challenge to EU's move to drop palm biofuel

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Malaysia threatens WTO challenge to EU's move to drop palm biofuel
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Malaysia on Saturday threatened to bring a World Trade Organisation (WTO) challe...

Land that has been cleared is pictured at an oil palm plantation in Johor, Malaysia February 26, 2019. REUTERS/Edgar Su

In a list of criteria published on Wednesday, the European Commission concluded that palm oil cultivation results in excessive deforestation and its use in transport fuel should be phased out. Malaysia’s foreign ministry described the recommendation as a “calculated political act” aimed at removing its palm oil exports from the EU marketplace.

Malaysia is the world’s second largest palm oil producer behind Indonesia. Both countries have been battling with EU governments and the EU parliament over attempts to curtail exports in a bid to address rampant deforestation linked to palm oil cultivation.

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