Malaysia palm oil

Timber plantations have now become the greatest threat to the Malaysian rainforest and its Indigenous residents.

The relative decline in the size of the European economy has given exporters less demanding alternatives for the exports.

The two nations have lobbied against Brussels' law, which would have increased scrutiny of their palm oil exports to European countries.

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

In late 2021, U.S. authorities barred goods manufactured by the company Smart Glove from entering the country due to its alleged use of forced labor.

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.

In its latest trafficking report, the U.S. State Department dropped Malaysia to "Tier 3," its lowest ranking.

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.