MPOC plays peacemaker in effort to lift US ban on palm oil

The lifting of a ban on Sime Darby Plantation Bhd’s (SDP) palm oil products was the culmination of an effort to find common ground between the US authorities and several parties in Malaysia.

The Malaysian Palm Oil Council (MPOC) said it held several discussions and in-person meetings with the US Customs and Border Protection (CBP) as well as the US Department of Labour and State Department “to facilitate new dialogues and channels of communication” between the US authorities and the Malaysian parties involved.

It said training programmes, organised jointly with the CBP, were later held in Kuala Lumpur for personnel of Malaysian palm oil companies to help them understand and identify forced labour practices.

In a media statement issued today to compliment SDP for its “effort to demonstrate real change”, and introduce reforms for the recruitment and management of workers, acting CEO of MPOC Belvinder Sron said the Malaysian palm oil sector had taken significant steps to strengthen labour practices throughout its supply chain.

“We look forward to continuing this dialogue with CBP and other US authorities, and to maintain open communication on these issues of mutual interest,” she added.

The US authorities had imposed a ban, or withhold release order, on the import of SDP’s palm oil products in December 2020 in response to suspicions of abusive labour practicies.

The CBP said it had earlier received information that “reasonably indicated” the presence of all 11 of the International Labour Organisation’s (ILO) forced labour indicators.

The indicators included restriction of movement, physical and sexual violence, intimidation and threats, retention of identity documents, withholding of wages, and excessive overtime.

In April last year, Sime Darby submitted a report to the CBP with an assessment disproving claims made against the firm. This was approved by the CBP in a filing dated Jan 31.

Tags: Malaysia, palm oil, MPOC, ban, Malaysian Palm Oil Council, US Customs and Border Protection, CBP, US