Latest News

WTO backs EU in logging case against Malaysia

The European Union scored a. success at the World Trade Company on Tuesday as an. adjudicating panel rejected a Malaysian grievance versus an EU. decision that biodiesel made from palm oil must cease to count. as an eco-friendly biofuel.

In the WTO's very first judgment associated to deforestation, a. three-person panel voted by two-to-one to turn down Malaysia's. substantive claims, while accepting its complaints over how the. measures had been prepared, released and administered.

The EU will need to make modifications, however need not withdraw. its procedures after the WTO's very first judgment associated to different. treatment of items according to their threats of greenhouse gas. emissions.

The dispute centres on EU guidelines setting a target of 10% of. transportation fuels from renewable sources. Crop-based biofuels are. thought about renewable if they fulfill sustainability requirements. The. EU leaves out crops grown on deforested land or where there is a. high risk they displaced food crops, which were then grown on. cleared land.

The EU identified that palm oil-based biofuel need to be. phased out as a renewable by 2030, while crops grown in the. bloc, such as sunflower or rapeseed, did not need to be.

Malaysia and Indonesia, the world's two biggest palm oil. producers representing 85% of worldwide exports, then challenged. the European Union at the WTO.

The WTO panel was the same for both cases and was expected. to have likewise provided a joint judgment on Tuesday. However,. Indonesia requested the suspension of the panel's work on. Monday. Parties to WTO conflicts generally understand panel results. before publication.

(source: Reuters)