KUALA LUMPUR (Reuters) – Malaysia said on Wednesday it will closely monitor changes to the European Union (EU)’s regulations, after the World Trade Organisation ruled this week in favour of an EU decision that biodiesel made from palm oil should cease to count as a renewable biofuel.
A WTO adjudicating panel, in its first ruling related to deforestation on Tuesday, rejected Malaysia’s claims against the EU decision, but accepted its complaints over how the measures had been prepared, published and administered.
The EU will need to make adjustments, but need not withdraw its measures, following the WTO ruling.
The Malaysian government will monitor any changes to the EU’s regulations and pursue compliance proceedings if necessary, Plantations and Commodities Minister Johari Abdul Ghani said in a statement.
Johari said the WTO report found fault with the EU’s use of indirect land use change to ban palm oil biofuels, and with the bloc’s approach to notifying and consulting with other economies when introducing new trade measures.
“This ruling from WTO demonstrates that Malaysia’s claims of discrimination are indeed justified,” he said.
(Reporting by Rozanna Latiff; Editing by Kanupriya Kapoor)
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