" />
Published On: Thu, Mar 8th, 2018

EU palm oil curbs might affect Malaysia Rafale fighter jet deal with France

nsnbc : Malaysia, the world’s second-biggest exporter of palm oil, said on Thursday, March 8, that the European Union (EU)’s decision to curb imports of palm oil could prompt the Malaysian government to reconsider its plan to buy Rafale fighter jets from France.

Oilpalms in Malaysia. Photo by Craig (PD)

Oilpalms in Malaysia. Photo by Craig (PD)

France’s Rafale jets, built by Dassault Aviation, had until recently been seen as the top choice of Malaysia as the country planned to buy 18 new fighter planes  in a deal potentially worth over 2 billion USD  – one of Asia’s biggest fighter jet deals.

However, negotiations on the deal hit a snag after European lawmakers pushed to stop using palm oil in producing fuels for vehicles due to environmental concerns, among others.

Speaking at a recent press conference, Malaysian Defence Minister Hishammuddin Hussein said the Rafale jets are competing with fighter planes produced by the UK, which has left the EU.

Hussein’s statement raised hopes for the UK’s BAE Systems which has been on a consistent and public campaign for nearly a decade to win the Malaysia contract.

In April 2017, the European Parliament approved a resolution, which stressed that palm oil imported to the EU should be certified to meet standards related to environmental sustainability.

The EU’s decision could cause a loss of about 500 million USD for Malaysia’s annual palm oil turnover. However, the EU maintains that increased palm oil production for biofuel production could lead to permanent and severe environmental harm and the destruction of important natural habitats.

F/AK – nsnbc 08.03.2018

About the Author

- nsnbc international is a daily, international online newspaper, established in 2013. nsnbc international is independent from corporate, state or foundation funding and non-partisan. nsnbc occasionally republishes selected articles from other media. Republication of articles does not imply that we agree with media's editorial policy. nsnbc international is free to read and free to subscribe to. We appreciate and depend on modest donations from our regular readers; such as the equivalent of the price of one print newspaper per month.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>