Malaysian palm oil that obtains Malaysian Sustainable Palm Oil (MSPO) certification will receive a tariff reduction of between 20 and 40 percent to penetrate the European market.
The reduction was agreed through the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA) on June 23 involving Malaysia and the member states of the European Free Trade Association (EFTA), namely Norway, Iceland, Liechtenstein and Switzerland.
Minister of Plantations and Commodities (KPK), Datuk Seri Johari Abdul Ghani stated that this agreement is an important step to strengthen Malaysia's position in the negotiations of the Malaysia-European Union (EU) Free Trade Agreement with the 27 EU member states.
Johari also said that the ministry will continue to work with the Ministry of Investment, Trade and Industry (MITI) to ensure that Malaysia's Sustainable Palm Oil (MSPO) Certification is recognised and protected in all trade agreements, including with the EU.
He also stressed that Malaysia is committed to leading global progress in the palm oil trade, responsible and free from deforestation activities with MSPO as the main thrust of this effort.
The collaboration between MITI and KPK brings three main impacts, namely the reduction of MSPO palm oil tariffs, international recognition of MSPO, and strengthening commitment to a deforestation-free supply chain.
