FILE Photograph: A employee unloads palm oil fruit bunches at a factory in Tanjung Karang, Malaysia August 14, 2020. REUTERS/Lim Huey Teng

KUALA LUMPUR (Reuters) – Malaysia is getting lawful action at the global trade watchdog against the European Union and member states France and Lithuania for restricting palm oil-primarily based biofuels, the authorities stated.

The world’s next most significant palm oil producer, which has termed a EU renewable-power directive “discriminatory motion,” is seeking consultations below the Environment Trade Organization’s Dispute Settlement Mechanism, the Plantation Industries and Commodities Ministry mentioned in a statement on Friday.

Minister Mohd Khairuddin Aman Razali mentioned the EU proceeded with applying the directive without having considering Malaysia’s commitment and views, even soon after Malaysia gave opinions and sent financial and technical missions to Europe.

The EU directive “will signify the use of palm oil as biofuel in the EU simply cannot be taken into account in the calculation of renewable vitality targets and in change generate undue trade limits to the country’s palm oil marketplace,” he reported in the assertion.

The ministry submitted the WTO request with cooperation from the Lawyer General’s Chambers and the International Trade and Field Ministry, getting action it had warned of in July from EU Renewable Electricity Directive II.

Malaysia will act as a third party in a independent WTO circumstance lodged by neighbouring Indonesia, the world’s most important palm oil producer, as a indication of solidarity and support, the ministry statement claimed.

Reporting by Liz Lee Enhancing by William Mallard