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International relations

Malaysia raises threat to EU trade talks as palm oil curbs loom

EU plan could hit exports from Southeast Asian countries

World's top three palm oil producers, Indonesia, Malaysia and Thailand, have agreed to cooperate in rejecting the EU’s decision to ban the use of palm oil in biofuels.   © Reuters

KUALA LUMPUR (Nikkei Markets) -- Malaysia has responded to a European Union proposal to ban the use of palm oil in biofuels by threatening to scuttle free trade talks between the Association of Southeast Asian Nations, of which it is a member, and the bloc.

"There will be no conclusion of free trade talks with Europe if the palm oil issue is not resolved," Plantation Minister Mah Siew Keong said at an industry conference Tuesday. "This is the Malaysian government's stand on the matter."

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