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Trade war

Malaysia fears palm oil export drop after US-China trade truce

Mahathir's spat with India over citizenship law also threatens to sap demand

The easing of the U.S.-China trade war means Malaysian palm oil will compete more with American soybean oil.   © AFP/Jiji

KUALA LUMPUR -- Malaysia is intensifying efforts to diversify its palm oil export destinations, as the world's second-largest exporter fears lower demand this year from India and China, the two largest importers of the local edible oil.

Fears of dwindling demand from Chinese importers rose after China agreed to buy more agricultural products from the United States under the so-called "phase one" trade deal signed Wednesday in Washington. The deal includes palm oil's major competitor, soybean oil.

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