Malaysia dangles post-Brexit trade deal in front of Britain if it breaks with EU on palm oil ban
- Malaysian Prime Minister Mahathir Mohamad says Britain can expect better trade with Southeast Asia if it takes a ‘fresh attitude’ on palm oil after it leaves the EU
- He also described the EU’s move to phase out palm oil as ‘misguided’ and a ‘form of modern colonialism’
“The key is to rethink the European Union’s misguided policy on palm oil,” Mahathir said. “A fresh attitude toward palm oil, unencumbered by influential special-interest groups, could lead to even better trade terms between the UK and the region than it currently enjoys.
“We hope to avoid a trade war with Europe. But if one transpires, that doesn’t mean the UK has to get caught in the crossfire,” he wrote.
The world’s most used vegetable oil can be found in everything from biscuits to shampoo and biofuel, but has come under constant fire from environmentalists saying that production of the crop causes deforestation and aggravates climate change.
In March, the European Commission determined that palm oil cultivation had resulted in excessive deforestation and it should no longer be considered a renewable transport fuel, albeit with some exemptions.
While Mahathir acknowledged the importance of environmental sustainability and deforestation in trade talks, he said that “the answer is not to single out one commodity and ban it” and called the EU’s move “a form of modern colonialism that has no place in today’s world”.
Mahathir called for dialogue and engagement to achieve joint solutions, including better regulation and stronger certification standards.