OREANDA-NEWSMalaysian authorities intend by November to apply to the WTO with a lawsuit against the European Union because of the intention of European countries to restrict imports of palm oil, reports Reuters on Monday. “We are preparing a lawsuit in the WTO against the EU, the relevant documents are in the Prosecutor General’s Office”, said Theresa Kok, Minister of Basic Industries of Malaysia. The head of department noted that at the moment "experts are being searched who will represent the side of the prosecution in the WTO".

Earlier, Malaysia and Indonesia, which produce 90% of the volume of world palm oil, sent a protest note to the EU in connection with the union’s plans to abandon this type of raw material. Kuala Lumpur threatened not to buy European fighters and replace them with Chinese-made aircraft. In January 2018, the European Parliament approved a package of measures aimed at reforming the energy market to reduce energy consumption and preserve the climate. Among the measures proposed is a ban on the use of palm oil in the production of biofuels. If approved, the ban will enter into force in 2030.

Earlier, the Malaysian authorities threatened the EU with revising trade agreements, including a reduction in imports, if Brussels adopted a law banning the use of palm oil for the production of biofuels after 2020. The corresponding statement by the country's Deputy Prime Minister Ahmad Zahid Hamidi was published by the American newspaper.

According to him, the possible refusal of the European Union to purchase palm oil will affect at least 500,000 Malaysians in this field. He also added that the export of palm oil in 2017 amounted to more than 55% in the total volume of exports of goods and is estimated at more than $ 19 billion. "The government is obliged to take measures to protect this sector of the economy", said the Deputy Prime Minister.