Malaysia-EFTA Economic Partnership Agreement enhances market access and recognition for sustainable palm oil
Kuala Lumpur, June 23, 2025— Malaysia has entered into a significant Economic Partnership Agreement (MEEPA) with the member states of the European Free Trade Association (EFTA)—Switzerland, Norway, Iceland, and Liechtenstein—facilitating enhanced trade relations and fostering greater collaboration on sustainability initiatives.
The agreement, signed on June 23, 2025, provides Malaysian palm oil with preferential access to EFTA markets through a tariff quota, featuring tariff reductions between 20% and 40%, based on the product category. In order to benefit from these reduced tariffs, it is crucial to adhere to the Malaysian Sustainable Palm Oil (MSPO) certification, which serves as a gateway to global markets of superior quality.
Global Acknowledgment for MSPO
In accordance with the agreement, both parties have endorsed a Joint Statement on Sustainable Palm Oil, which elevates global recognition of Malaysia’s leadership in sustainable palm oil production and strengthens trust in MSPO-certified supply chains.
The Malaysian government, specifically the Ministry of Investment, Trade and Industry and the Ministry of Plantation and Commodities, was instrumental in obtaining this recognition from EFTA nations, highlighting their dedication to sustainability and global competitiveness.
Three Essential Outcomes of MEEPA
The MEEPA agreement results in three significant outcomes:
The agreement includes a reduction of tariffs for palm oil products certified under the MSPO standard.
Malaysia officially recognizes MSPO as its national sustainability certification. The commitments to transparency, traceability, and supply chains free from deforestation have been enhanced.
The anticipated provisions are set to advantage all tiers of Malaysia’s palm oil sector—ranging from smallholders to large producers—by improving their capacity to compete in sustainability-focused global markets.
The importance of Strategy in EU Trade Negotiations
The Minister of Plantation and Commodities, YB Dato’ Seri Johari Abdul Ghani, characterized the agreement as a pivotal reference point for Malaysia’s current Free Trade Agreement (FTA) discussions with the European Union.
“The ministry considers this agreement to be a significant reference for Malaysia’s stance in the ongoing negotiations of the Malaysia-EU Free Trade Agreement with the 27 EU member states,” stated Johari.
He reiterated Malaysia’s dedication to collaborating closely with the Ministry of Investment, Trade, and Industry to ensure that MSPO is fully represented and protected in all forthcoming trade agreements.
“Malaysia is dedicated to advancing global initiatives in sustainable, responsible, and deforestation-free palm oil trade, with MSPO as a central element of these endeavors,” he added.