Eu Free Trade Agreement Malaysia

In March 2019, ten­sions erupt­ed between the Euro­pean Union and Malaysia, after the Euro­pean Com­mis­sion con­clud­ed that palm oil cul­ti­va­tion was caus­ing exces­sive defor­esta­tion and that its use as fuel should stop by 2030. Malaysia, the world‘s sec­ond-largest palm oil pro­duc­er after Indone­sia, depends on the har­vest to gen­er­ate bil­lions of dol­lars in for­eign exchange earn­ings and hun­dreds of thou­sands of jobs. Prime Min­is­ter Mahathir Mohamad said the Euro­pean Union‘s increas­ing­ly hos­tile atti­tude towards palm oil was an attempt to pro­tect alter­na­tives pro­duced by Europe itself, such as rape­seed oil. He claimed that the Euro­pean Union risked launch­ing a trade war with Malaysia because of its “gross­ly unfair” pol­i­cy of reduc­ing the use of palm oil, which Mahathir con­sid­ers “unfair” and an exam­ple of “rich peo­ple”. Try­ing to impov­er­ish the poor. [5] Two exter­nal stud­ies were con­duct­ed, i.e. a quan­ti­ta­tive study based on a gen­er­al mod­el of pre­dictable equi­lib­ri­um focus­ing on the effects of lib­er­al­iza­tion and a qual­i­ta­tive study that exam­ined in detail non-tar­iff and reg­u­la­to­ry issues relat­ed to trade in goods, ser­vices and invest­ment. The EU was Malaysia‘s third largest trad­ing part­ner in 2016, after Chi­na and Sin­ga­pore. In 2016, trade with the EU increased by 0.4% to .RM 149.1 bil­lion. “Brex­it has lit­tle impact on trade between the EU and Malaysia” “In terms of trade pol­i­cy, we also found that Malaysia is now a bit cau­tious; Before that, it was very open and secure at the region­al lev­el in the areas of free trade, open trade and rules-based trade.