KUALA LUMPUR (March 15): The EU’s decision to classify palm oil as “high risk” in proposed legislation on biofuel is based on inaccurate and discriminatory factors, Malaysia’s Primary Industry Minister Teresa Kok says in statement.

* Decision of the European Commission to phase out palm oil as biofuel in Europe on the basis that palm oil causes deforestation is totally without foundation: Kok

* Malaysia has made clear that if the so-called Delegated Act on biofuel is adopted, that it will investigate retaliatory action: statement

** “Entire Delegated Act process has been based on the politics of protectionism:” Kok

* Malaysia notes palm oil produces eight times more oil than U.S. soybean oil per hectare but the European Commission classifies soybean as “low risk” for political reasons

* Decision to lower the definition of smallholders to 2 hectares compared with the previously proposed 2-5 hectares in the draft is discriminatory towards smallholders in palm-producing countries