WTO ends dispute between EU and Malaysia over palm oil

The World Trade Organization (WTO) agreed with the European Union last March, in its dispute with the Malaysian country over the use of palm oil as a plant resource.

And the European Union has been setting the standard for years course for a cleaner future with a significant boost to renewable energy. However, among those clean resources, the Twenty-seven agreed exclude palm oil and thus avoid considering it a raw material for biofuel.

Malaysia, one of the main producers of this oilwas quick to express his discontent with this news and in 2019, pointed out the inconsistency of the European position with respect to international trade standards.

In 2021, just two years later, Indonesia joined its neighbor and also filed a complaint alleging the same. Between both Asian countries, there is 85% of global production palm oil, which is also used in other sectors, such as food or cosmetics.

The WTO also sees certain deficiencies in the standard

After studying the case, The WTO has ruled in favor of the unionwhich alleges that palm oil actively collaborates in global deforestation, eliminating land, cropland or entire forests for plantations capable of producing this raw material.

However, the same international organization admits that there are certain deficiencies in the preparation and application of these standards.

The ruling only affects the Malaysian country, since Indonesia asked for a two-month suspension for your complaint.