EU palm oil

Indonesia and Malaysia, which account for 85 percent of global palm oil production, have reacted with hostility to the EU's new regulation.

The regulation, which could severely limit the country's palm oil exports to European nations, has been strongly opposed by Kuala Lumpur.

The two nations hope to convince European regulators that their local certification efforts conform to the EU's rigorous new regulation on deforestation.

Joseph D'Cruz, the head of the Roundtable on Sustainable Palm Oil (RSPO), believes that Brussels' new rules could have a "human, social and developmental cost."

The move followed Brussels' passage of a law that could severely restrict palm oil imports to the European bloc.

There is a tension between Brussels' environmental concerns and its desire to boost its commercial engagement with the Asia-Pacific.

The EU is making efforts to leverage its market power to ensure that products entering the trading bloc are more environmentally sustainable.

The increased lobbying effort reflects the increasingly negative perceptions of the industry.

Palm oil tensions between the EU and Indonesia and Malaysia continue to be a point of contention in the group’s ties with Southeast Asian countries.