Malaysian Industry Group Charges French Tax On Oil Palm Could Violate GATT, TBT

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France recently introduced a tax specifically directed at palm oil. The new law proposes a tax that will hit palm oil that doesn’t meet ‘sustainability criteria’. There would be an initial tax of EUR90 per tonne on ‘unsustainable’ palm oil. ‘Sustainable’ palm oil would be exempt.

Palm oil producers have for the most part expressed opposition to the tax. Governments – particularly Indonesia’s – have been vocal, pointing out that the law breaks both WTO and EU rules.