How do Malaysia and Indonesia view EU palm oil restrictions?

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Malaysia and Indonesia View EU Palm Oil Restrictions as Protectionist Trade Barriers

Malaysia and Indonesia perceive the European Union's restrictions on palm oil as protectionist trade barriers intended to favour the bloc's domestic oilseed industries. Both nations argue that regulations such as the EU deforestation regulation and the renewable-energy directive unfairly target their palm oil exports, despite their efforts to comply with EU requirements. This disagreement has led both countries to pursue legal action against the EU.
Opposition to EU Regulations

Malaysia and Indonesia contend that the EU's measures are designed to disadvantage their palm oil sector. The EU deforestation regulation, introduced recently, is in addition to the EU renewable-energy directive announced in 2018, which mandates the phase-out of palm-based transportation fuels by 2030. Furthermore, the EU has set a distinct safety limit for 3-MCPD esters in palm oil compared to oils derived from crops like soybean, canola, and sunflower.
Legal Challenges at the WTO

As major global palm oil exporters, accounting for 85 per cent of world exports, both Indonesia and Malaysia have initiated separate World Trade Organisation (WTO) suits against the EU. These legal challenges are specifically focused on the EU's renewable-energy directive.
Perceived Inconsistency in EU Requirements

Producers in Malaysia and Indonesia assert that they have implemented measures to meet EU standards. These actions include strengthening national sustainable palm oil certification standards and enhancing environmental protection and food safety protocols. However, they feel that the EU continues to introduce new restrictions, creating an ongoing challenge for their exports.

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How do Malaysia and Indonesia view EU palm oil restrictions?

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