US bans imports of palm oil from Malaysia’s Sime Darby over forced labour allegations
- It is the third US Customs and Border Protection import ban this year related to suspected forced labour in Malaysia
- Palm oil is used as an ingredient in many processed foods, along with cosmetics, pharmaceuticals and biodiesel fuel
The US government widened its ban on Malaysian palm oil imports on Wednesday over allegations that one of the country’s top producers uses forced labour.
Under a new withhold release order (WRO), US Customs and Border Protection (CBP) will be required to detain any palm oil arriving in the US from Malaysia’s Sime Darby Plantation Berhad, a major supplier of the product.
It is the third WRO issued this year related to suspected forced labour in Malaysia, and the second targeting the country’s massive palm oil industry. Malaysia’s FGV Holdings Berhad was the subject of a separate WRO issued at the end of September.
Sime Darby said it was reviewing the statement to better understand any potential impact, and would engage with the agency to address the concerns raised.
“The allegations made suggest a breach in the implementation of (Sime Darby’s) own strict policies,” it said on Thursday. The company is committed to combating forced labour and has robust policies to protect workers’ rights, it said.
03:43
Indonesian women in palm oil industry abused and exploited
But after reports emerged in October that the Commerce Department had its eye on Sime Darby Plantation for possible sanctions, the company said at the time that it was in a “position of leadership in driving the principles of sustainable development across our operations”.