Malaysia Secures Preferential Market Access for Sustainable Palm Oil Through MEEPA

25 June 2025

KUALA LUMPUR: Malaysia has secured preferential market access and strong international recognition for its sustainable palm oil following the signing of the Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement (MEEPA).

The agreement, signed on June 23, marks a significant milestone in Malaysia's trade relations with EFTA member states, Switzerland, Norway, Iceland and Liechtenstein while further strengthening bilateral cooperation on sustainability.

In a statement today, the Ministry of Plantation and Commodities said the agreement will enable Malaysian palm oil to benefit from reduced import tariffs through a tariff rate quota mechanism, with reductions ranging from 20 to 40 per cent depending on the product type.

“Importantly, only palm oil certified under the Malaysian Sustainable Palm Oil (MSPO) standard will qualify for these tariff reductions, positioning MSPO as a key enabler for improved market access and as a trusted standard for Malaysian palm oil exports to EFTA countries,” the ministry said.

As part of the agreement, both parties also adopted a Joint Statement on Sustainable Palm Oil, enhancing international recognition of Malaysia’s leadership in sustainable palm oil production and reinforcing trust in MSPO-certified supply.

The achievement was made possible through the collaborative efforts of the Investment, Trade and Industry Ministry and Plantation and Commodities Ministry.

According to the statement, MEEPA delivers three key outcomes, including tariff reductions for MSPO-certified palm oil, international recognition of MSPO as Malaysia’s national sustainability standard, and strengthened commitment to transparency, traceability and deforestation-free supply chains.

The ministry said the agreement provides a stronger platform for Malaysia’s palm oil sector to compete in global sustainability-driven markets, from smallholders to larger producers, while reinforcing market access and tariff advantages for MSPO-certified products.

Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani described the agreement as an important reference for Malaysia’s position in the ongoing Free Trade Agreement (FTA) negotiations with the 27 member states of the European Union (EU).

“The Plantation and Commodities Ministry will continue to work closely with the Investment, Trade and Industry Ministry to ensure that Malaysia's sustainability leadership, through MSPO, is fully reflected and protected in all future trade agreements, including with the European Union," he said.

Johari also reaffirmed Malaysia's commitment to promote sustainable practices in the palm oil industry while strengthening the country’s position in global markets through a focus on sustainability and transparency in the supply chain.

"Malaysia remains fully committed to driving global progress in sustainable, responsible and deforestation-free palm oil trade, with MSPO at the centre of these efforts," he said.