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The Ministry of Plantation and Commodities said the agreement with the European Free Trade Association also secures international recognition for Malaysia’s MSPO sustainability certification.
The ministry said Malaysian palm oil will benefit from tariff reductions ranging between 20% and 40% under a new economic partnership agreement signed between Malaysia and the European Free Trade Association (EFTA).
EFTA consists of four countries: Switzerland, Norway, Iceland, and Liechtenstein.
The ministry said the Malaysia-EFTA Economic Partnership Agreement (MEEPA) will also provide international recognition for Malaysian Sustainable Palm Oil (MSPO) as the country’s national sustainability standard.
It also strengthens commitments to transparency, supply-chain traceability, and deforestation-free products.
The ministry said the agreement gives Malaysia’s palm oil industry a stronger platform to compete in sustainability-focused global markets.
It also improves market access and tariff advantages for palm oil supplies certified under MSPO.
As part of the agreement, Malaysia and EFTA countries adopted a joint statement on sustainable palm oil.
The statement strengthens international recognition of Malaysia’s leadership in this area and supports confidence in Malaysian supplies certified under MSPO.
The ministry added that MSPO certification will be a key requirement for benefiting from tariff reductions, making it an important tool for improving market access in Europe.
MSPO certification is a Malaysian system that assesses:
The certification became mandatory from January 1, 2020 for all oil palm operations in Malaysia, including independent smallholders.
Plantation and Commodities Minister Johari Ghani said MEEPA will be an important reference point in ongoing negotiations with the European Union on a free trade agreement with the 27-member bloc.
He said the ministry will continue working with the Ministry of Investment, Trade and Industry to ensure Malaysia’s leadership in sustainability through MSPO is fully represented and protected in all future trade agreements, including with the EU.
He added that Malaysia remains fully committed to advancing global progress in responsible, sustainable, and deforestation-free palm oil trade, with MSPO at the center of these efforts.
Johari said last week that the government is exploring new markets for palm oil to reduce dependence on major markets amid global geopolitical concerns.