AreaMalaysia

Commodity GroupBiofuels

CommodityBiodiesel

Date01/07/2020

Policy CategoryTrade

Policy InstrumentTrade disputes

DescriptionFormally request WTO dispute consultations with the European Union regarding certain measures the bloc adopted in the renewable energy sector – in particular the classification of palm oil as a biofuel feedstock with high environmental footprint.

NotesMALAYSIA / EUROPEAN UNION – trade dispute (EU renewable energy policy): Reversing its earlier stance on the matter, the Malaysian Government announced that it would formally request WTO dispute consultations with the European Union regarding measures adopted by the EU and its Member States in the renewable energy sector – notably the classification of palm oil as a biofuel feedstock with ‘high indirect land use change (ILUC)-risk’ (see MPPU Mar.’19 & Mar.’20). The Malaysian Government views the EU’s policy as a discriminatory action that restricts free trade practices, while lacking transparency and scientific credibility and disregarding Malaysia’s sustainability efforts. Malaysia would thus embrace Indonesia’s position and act as third party in the WTO case filed by Indonesia in December 2019 (see MPPU Jan.’20).