- The EU has once again postponed the entry into force of EUDR regulations restricting imports of raw materials linked to deforestation.
- Malaysia’s MPOC welcomes the decision, pointing to the need to improve the shortcomings of the regulations.
- Malaysia criticizes its classification as a “standard risk” country, which entails additional export controls.
- The EU’s trading partners fear that the high costs of compliance will weaken their competitiveness in the European market.
EUDR postponed again due to concerns from industry and trading partners
The Malaysian Palm Oil Council (MPOC) has welcomed the European Union’s decision to once again postpone the entry into force of the EU’s Anti-deforestation Regulation (EUDR). The organisation stresses that the additional time will give Brussels the opportunity to correct significant structural and operational flaws in the regulation, which in its current form has caused much controversy among producers and exporters.
The EUDR prohibits the import of commodities such as soya, beef, cocoa or palm oil if forests are destroyed for their production. This is the second postponement of the implementation of the regulation, after Brazil, Indonesia and the United States achieved a delay a year earlier. For the European Union, the regulations are part of the European Green Deal and aim to reduce global deforestation and promote more sustainable supply chains.
Malaysia criticises risk classification and additional costs for exporters
The MPOC points out that despite manufacturers’ significant investment in meeting EUDR requirements and sustainability efforts, the current regulatory framework “does not reward responsible leadership in environmental practices”. Malaysia’s categorisation as a “default risk” country is particularly objectionable.
In practice, this means that 3% of all shipments of palm oil and other commodities from Malaysia must be subject to additional inspections. As the second largest palm oil producer in the world, Malaysia emphasises that these restrictions are important for its economy. Other EU trading partners are also concerned that the high cost of compliance could affect the competitiveness of their products on the European market.
