'Gov't should stall business negotiations with EU until palm oil ban issue resolved'

Four bodies – representing some 650,000 smallholders and over five million dependents – are urging Putrajaya to halt all trade negotiations with Europe pending resolution of the European Union's proposed ban on the use of palm oil as biofuel by 2020.Felcra Bhd chairperson Nageeb Ahmad Abdul Wahab said that this was decided during the agency's first-ever meeting with the heads of Felda, Risda and the National Organisation of Smallholders (Nash) yesterday.It was previously reported that Putrajaya will present legal and technical arguments this week against the EU plan to limit the use of palm oil, opposing a move that could lead to an eventual ban.The European Commission last month said the use of palm oil in motor fuel should be phased out because oil palm cultivation led to deforestation. The move is part of the EU's climate goals.