JAKARTA\/BRUSSELS (Reuters) – The leaders of Indonesia and Malaysia, the world\u2019s two biggest palm oil producers, sent a letter of objection to the European Union criticizing its decision to no longer consider palm oil as a green fuel and threatening the bloc\u2019s ties with the countries.<\/p>\n
Last month, the European Commission determined that palm oil has resulted in excessive deforestation and that it should no longer be considered a renewable transport fuel, albeit with some exemptions.<\/p>\n
It will become law unless a majority in the European Parliament or in the group of EU countries objects. So far, there are no indications that either will do so.<\/p>\n
Indonesia and Malaysia have both threatened a World Trade Organization challenge against the EU plan.<\/p>\n
\u201cBoth our governments view this as a deliberate, calculated and adverse economic and political strategy to remove palm oil from the EU marketplace,\u201d Indonesian President Joko Widodo and Malaysian Prime Minister Mahathir Mohamad said in an April 5 letter that was reviewed by Reuters.<\/p>\n
\u201cShould this delegated regulation enter into force our governments shall review our relationship with the European Union as a whole, as well as its member states. This may include the reviewing of our partnership negotiations, procurements contracts and key imports from the EU,\u201d the letter said.<\/p>\n
With the planned regulation, the EU plans to increase its use of renewable energy sources and to take into account deforestation when it determines what products can be labeled renewable.<\/p>\n
Delegations from both countries arrived in Brussels for an official visit on Monday and Tuesday.<\/p>\n
Indonesia\u2019s coordinating minister for economic affairs Darmin Nasution said the country would definitely file a World Trade Organization (WTO) complaint once the new rules were adopted. Tan Yew Chong, secretary general for Malaysia\u2019s ministry of primary industries, said his country would do the same.<\/p>\n
The joint mission of the Council of Palm Oil Producing Countries, which also includes Colombia, have a series of meetings with EU officials, lawmakers and national governments to convey their disappointment and to fight the act put forward by the European Commission.<\/p>\n
Indonesia, the world\u2019s largest palm oil producer, argues that rather than promoting sustainability in the vegetable oil sector, the regulation is more about protecting and promoting the European Union\u2019s home-grown vegetable oils, such as rapeseed and sunflower.<\/p>\n
European spirits makers said last week they are facing difficulties exporting drinks to Indonesia as tensions over palm rise, but an Indonesian official denied that it was a retaliation against EU\u2019s renewable energy policy.<\/p>\n","protected":false},"excerpt":{"rendered":"
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