While the palm oil dispute has been resolved, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz highlighted the need to address emerging areas, such as digital trade and green technology, to ensure a comprehensive and mutually beneficial agreement. (Photo by Zahid Izzani/The Edge)
KUALA LUMPUR (Feb 24): Malaysia has resolved the issue of palm oil in its negotiations for a free trade agreement (FTA) with the European Union (EU), Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said on Monday.
“I am happy to report that palm oil is no longer an issue,” Zafrul told reporters after the presentation of his ministry’s report card for 2024. “We have addressed the concerns, and I think the mitigation is the fact that we have standards that comply [with international standards].”
While the palm oil dispute has been resolved, Zafrul highlighted the need to address emerging areas, such as digital trade and green technology, to ensure a comprehensive and mutually beneficial agreement.
“I am targeting that by next year, we should complete the EU FTA” negotiations, he added.
Malaysia’s discussions with the EU, which commenced in 2010, have been put under ice for a decade, mainly due to disagreements over palm oil-related policies, including the bloc’s procurement practices and sustainability clauses.
Prime Minister Datuk Seri Anwar Ibrahim, during his visit to Brussels last month, emphasised Malaysia’s improved position in the negotiations, citing political stability and economic resilience.
Previous talks stalled due to “unreasonable conditions” imposed by the EU, though Malaysia’s proactive measures, including the preservation of about 55% of its forested areas, will help to push the talks forward, he said.
In 2023, the EU was Malaysia’s fourth largest trading partner, with trade reaching RM206.79 billion. As of 2023, investments from the EU into Malaysia generated over 153,000 jobs through 1,323 projects valued at RM227.9 billion.
Source: The Edge Malaysia
