If the European Union continues with the plan to stop the export of palm oil on the European market, Malaysia will challenge the World Trade Organization (WTO).
The Malaysian Ministry of Foreign Affairs announced this on Saturday. The European Commission concluded this week that palm oil production is leading to excessive deforestation and should therefore be stopped.
Indonesia, the world’s largest palm oil producer, has previously threatened to challenge the EU’s plan at the WTO. This supervises compliance with agreements on trade between countries.
Palm oil is used as a raw material for biodiesel and food for the poor. The oil is extracted from the fruits of the oil palm.