Strategies for Countering the Anti-Palm Oil Campaigns

in the EU

Presented by
Tan Sri Datuk Dr Yusof Basiron
15 January 2020

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 BACKGROUNDER
The European Union has legislated a regulation that sets limits on
the usage of palm oil in biofuels and encourages the phase out of
consumption of palm oil products. This regulation has given
intensified to new obstacles and challenges which leads to negative
images of palm oil among the society, and the increasing amount of
anti-palm oil campaign by NGOs and the communities that are
escalating day-by-day. In addition, negative images of palm oil and
anti-palm oil campaigns take place not only in the European union
regions, but globally. In addition, the European Union has other palm
oil legislations. In order to achieve a positive and neutral image of
palm oil. several strategies to encounter these aforementioned
issues must be fulfilled.

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 Regulations causing bad images or perceptions on
Palm Oil
1. Renewable Energy Directives (RED II):
o Pursuant to the RED II Delegated Act, Palm
Oil is classified as High-Risk Indirect Land
Use Change (ILUC) that elaborates that this
measure is the primary cause of
deforestation; and
o The Phase out of Palm oil in the European
Union market is set to target by 2030 all
European Member States will not use
biofuels that consist of Palm Oil.
The RED II had violated one of the primary principles of the World Trade
Organization. Namely, the Non-Discrimination Principles pursuant to General Tariff
and Trade Agreement 1994. By, Establishing trade barriers which will rescind the
Multilateral Trading System and the Global Supply Chain. Due to the restrictions of
Palm Oil into the European Union Markets. Hence, the Discriminatory action without
transparency cognitions which does not explicitly state on the RED II. Additionally,
Palm Oil is the only oils and fats that are considered as High-Risk on ILUC
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 Regulations causing bad images or perceptions on
Palm Oil
2. French Constitutional Court
Decision
o Based on the Constitutional
court decisions which regulates
the usage of palm oil in
biodiesels;
o The verdicts stated that Palm
Oil is one of the main cause of
deforestation
The TOTAL Refinery company located in South France will not be able to use palm
oil as one of their materials to produce biodiesel. Which leads to insolvency with the
total loss the company had suffered. Moreover, this Jurisprudence is enforced
immediately without undue delay. Hence, other potential issues may eventuate and
effect on the import of Palm Oil to the France Market.

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 Regulations causing bad images or perceptions on
Palm Oil
3. European Union Proposed
safety measures on 3-MCPD
o The European Union proposed
to impose two different levels
of 3-MCPD
o With the proposed a level of
1.25 ppm for soft oils such as
soybean and rapeseed and all
soft oils;
o and 2.5 ppm for palm oil The treatment of discrimination and not in accordance with the objective of set a
safe maximum level for contaminants of palm oil. Thus, a limit of 1,25 ppm is
achievable, but a safety limit of 2,5 ppm is set. The classification of two safe limits is
prejudicial and legally inconsistent

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 Regulations causing bad images or perceptions on
Palm Oil
4. European Union Palm Oil
Free Label
o The European Union proposed
to impose two different levels
of 3-MCPD
o With the proposed a level of
1.25 ppm for soft oils such as
soybean and rapeseed and all
soft oils;
o and 2.5 ppm for palm oil Discriminatory treatment of palm oil in the European Union A thousand
food products are involved in the use of palm oil free labels, and the aut
horities of the European Union are reluctant to take action to prevent th
e misuse of labeling legislation.

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 Directives causing bad images or perceptions on
Palm Oil
5. Italian Directives
o Numbers of institutions such as
educational and governmental
institutions prohibits the
consumption of palm oil

Discriminatory actions by authorities without further elucidations and

transparency which caused negative images on Palm Oil, this directives
predictably and presumably will manifest stigmas on the community
especially children's that Palm Oil as negative component

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 Approaches
To counter the negative publicity affecting palm oil image

World Trade Organization International

Trade
Dispute Settlement System
Retaliation

Judicial Actions

Communication
Diplomatic Approaches and Education

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 World Trade Organization (‘WTO’)
Dispute Settlement System
Indonesia had submitted a request of consultation to the European Union and to the
WTO Secretariat on the 9th of December 2019
Malaysia and five (5) other Palm Oil Producing Countries with the same substantial issues
had "requested a joint for consultation and had been accepted as “third parties”
As one of the most prominent International Trading organization, one of the purpose of
the WTO is to provide forum to negotiate to reach an amicable solution among member
states to have a harmonized multilateral trading system, and to comply each member
states domestic legislation with the applicable WTO Agreements
The European Union RED II had violated one of the
primary principles of the WTO the “Non-
Discriminatory” which is defined pursuant to GATT 1994
Article I
“The rules and procedures of this Understanding shall apply to disputes brought pursuant to the consultation and dispute settlement
provisions of the agreements listed in Appendix 1 to this Understanding (referred to in this Understanding as the "covered agreements"). The
rules and procedures of this Understanding shall also apply to consultations and the settlement of disputes between Members concerning
their rights and obligations under the provisions of the Agreement Establishing the World Trade Organization (referred to in this
Understanding as the "WTO Agreement") and of this Understanding taken in isolation or in combination with any other covered agreement.”
– Article I.1 of the Dispute Settlement Understandings
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 Judicial Actions
What to be done :
• Palm Oil Free Labels
o Should be opposed as it is not fair The key performance index (KPI):
to the image of palm oil The palm oil free labels should be
o EU’s law already provides for disallowed by the EU authorities if
positive labelling of ingredients there are no proven reasons to
o Precedent in the US which disallow justify the use of it as per the law
the use of no palm oil labels in the
1980s Can be done in key EU member
The purpose: Legal action must be countries by targeting food product
pursued by organizations with ‘local manufacturers or supermarket
standi’ to take the manufacturers to chains allowing such discriminatory
the relevant courts to seek justice policy
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 Diplomatic Approach

• Economic Diplomacy
o This is a form of diplomatic The key performance index (KPI):
approach Any negotiations involving a
o Indonesia and Malaysia should not comprehensive economic
keep silent about the EU’s partnership agreement or bilateral
discrimination on palm oil trade agreement must include palm
oil interest as a basis of any
concluded approval
The purpose: Leaders of both
countries should leverage on
diplomatic approach to continue To pursue a diplomatic solution
engaging the EU and reminding the through an ASEAN-EU Joint
EU government on the importance Working Group
of fair trade
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 Trade Retaliation

• Threat of Trade Retaliation

o Advantageous to seek a The key performance index (KPI):
negotiated settlement for all toxic
anti-palm oil issues in the EU
o Indonesia have successfully used
such threat like purchase of Airbus
planes
The purpose: Trade retaliation may
be used to strengthen the
bargaining power during the
negotiation for amicable solutions.
The use of trade retaliation to
counter palm oil toxic issues can be
the most effective tool.
The threat of reduce purchase of
Airbus planes and luxury cars to
save CO2 emissions can be part of
the bargain in the negotiated
solution for removing RED II and
other discriminatory treatments of
palm oil in the EU
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 Communication and Education

• Communication and PR
o The least effective because it is The key performance index (KPI):
costly, and the toxic sources of bad Experts to be hired to write blogs,
publicity are still generating opinions, and articles in print and
negative perceptions on palm oil social media
as long as they are not removed.
Hire proven lobbyists and
The purpose: To build a positive environmental experts in the EU to
image and good perception of palm help raise the green image of palm
oil products through PR exercise, oil
publication, communication and
social media engagements
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Thank You

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