The European Union’s new deforestation regulation has sparked controversy and backlash from agricultural leaders in Malaysia. Leaders of the industry and government officials have called the regulation “highly demeaning” and have spoken out against it. This article will explore the regulation and the reaction to it from Malaysia’s agricultural community.
Last year, the European Union approved the deforestation regulation, leading to disputes from various quarters, notably developing markets that are key producers of commodities that the regulation will affect, such as rubber, palm oil, coffee, cocoa, and others. Industry experts predict negative repercussions resulting from the regulation, including significant price hikes for food and beverage products within and outside the EU and a potential trade war between Europe and Southeast Asia.
The regulation will affect several countries, including Malaysia, a major producer of the affected commodities and home to 2.5 million farmers and smallholders who may lose the most once the deforestation regulation is finalised. Local industry associations organised a formal protest in Kuala Lumpur, Malaysia’s capital, earlier this month and submitted a heated petition to the EU, demanding that the European Union review and withdraw clauses that unjustly target non-European small farmers.
Leaders from six industry associations, including the government-linked Federal Land Consolidation and Rehabilitation Authority, and Federal Land Development Authority stated that the regulation carries the potential to label Malaysia as a “High Risk” country for deforestation, which would be highly demeaning to the country’s image without justification. They also demanded that the EU must recognise the Malaysian Sustainable Palm Oil (MSPO) Standards as a compliance path for the deforestation regulation.
The protest and petition received support from Malaysian Deputy Prime Minister and Minister of Plantation and Commodities Fadilah Yusof, who urged the EU to make the situation right. He said that small farmers depend on the export of palm oil, rubber, and other agricultural commodities to support their families. The Deforestation Regulation presents a significant obstacle for them to access the European market, the ultimate outcome of which would be to increase poverty, reduce household incomes, and harm rural communities.
The protestors’ signs expressed their frustration with the EU’s discrimination against palm oil, with messages such as ‘Stop discrimination against palm oil.’ Similarly, the protest leaders focused on highlighting the EU’s lack of concern for the welfare of these farmers. They called the regulation protectionist behaviour that helped European multinationals at the expense of Malaysian small farmers.
The National Rubber Industry Smallholders Development Authority’s Deputy Director General, Ali Sabuddin bin Abu Samad, called the regulation insulting. He argued that the EU’s regulation fails to acknowledge the progress made by the small farmers in reducing deforestation to almost zero in Malaysia. In addition, he said that it is insulting to consider Malaysia as “high risk” for deforestation and that the country deserves a guarantee that it will not be considered “high risk” under the regulation.
In conclusion, the EU deforestation regulation has caused controversies among various quarters globally. It presents an obstacle for small farmers and their families to access the European market, leading to increased poverty, reduced household incomes, and harm to rural communities. The Malaysian government has called for the EU to withdraw its clauses and recognise the MSPO standards as a compliance path for the deforestation regulation. The success of the campaign still seems uncertain, and as the situation unfolds, it is left to be seen how it will affect the various stakeholders involved.
