Kuala Lumpur: 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).
According to BERNAMA News Agency, the Ministry of Plantation and Commodities (MPIC) stated that the agreement, signed on June 23, will benefit Malaysian palm oil through reduced import tariffs under a tariff rate quota mechanism. These tariff reductions range 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, including Switzerland, Norway, Iceland, and Liechtenstein, MPIC noted in a statement.
MPIC Minister Datuk Seri Johari Abdul Ghani expressed that 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. He emphasized Malaysia’s commitment to advancing global progress in sustainable, responsible, and deforestation-free palm oil trade, with MSPO being central to these efforts.
As part of MEEPA, both parties adopted a Joint Statement on Sustainable Palm Oil, which enhances international recognition of Malaysia’s role in sustainable palm oil production and bolsters trust in MSPO-certified supply, the ministry added.
The collaboration between the Ministry of Investment, Trade and Industry (MITI) and MPIC facilitated this recognition by the EFTA countries. MPIC highlighted that MEEPA delivers three critical outcomes: 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.
For Malaysia’s palm oil industry, this agreement offers a stronger platform to compete in global sustainability-driven markets, benefiting smallholders to larger producers while reinforcing market access and tariff advantages for MSPO-certified supply.