Malaysia Gains Preferential Palm Oil Market Access, Recognition Through MEEPA
KUALA LUMPUR, June 25 (Bernama) -- Malaysia has gained preferential market access and recognition for its sustainable palm oil following the signing of the Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement (MEEPA).
The Ministry of Plantation and Commodities (MPIC) said the agreement signed on June 23 will benefit Malaysian palm oil through reduced import tariffs under a tariff rate quota mechanism, with tariff cuts ranging between 20 per cent and 40 per cent, depending on the product category.
“The Malaysian Sustainable Palm Oil (MSPO) certification is established as a prerequisite for accessing these reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA member states, namely Switzerland, Norway, Iceland, and Liechtenstein,” MPIC said in a statement.
MPIC Minister Datuk Seri Johari Abdul Ghani said the ministry views the agreement as an important reference point for Malaysia’s position in the ongoing Malaysia-European Union (EU) Free Trade Agreement negotiations with the 27 EU member states.
“Malaysia remains fully committed to driving global progress in sustainable, responsible, and deforestation-free palm oil trade, with MSPO at the centre of these efforts,” he said.
As part of MEEPA, the ministry said both parties also adopted a Joint Statement on Sustainable Palm Oil, which enhances international recognition of Malaysia’s leadership in sustainable palm oil production and reinforces trust in MSPO-certified supply.
“The efforts of the Ministry of Investment, Trade and Industry (MITI), together with the MPIC, made this recognition by the EFTA countries possible,” it stated.
MPIC said MEEPA delivers three critical outcomes, namely providing tariff reductions for MSPO-certified palm oil, securing international recognition of MSPO as Malaysia’s national sustainability standard, and strengthening the commitment to greater transparency, traceability, and deforestation-free supply chains.
MPIC noted that for Malaysia’s palm oil industry, this agreement provides a stronger platform to compete in global sustainability-driven markets, from smallholders to larger producers, while reinforcing market access and tariff advantages for MSPO-certified supply.
-- BERNAMA