KUALA LUMPUR, March 6 (Reuters) - Malaysia will respond with “might and tact” if the European Union proceeds with a plan to limit use of palm oil in biodiesel, a cabinet minister said on Tuesday.
“Malaysia does not want a trade war with Europe but if one is foisted on us, we will respond with might and tact,” said Mah Siew Keong, Malaysia’s minister for plantation industries and commodities, speaking at an industry conference in Kuala Lumpur.
The E.U. in mid-January approved draft measures to reform its power market and reduce energy consumption to meet more ambitious climate goals. The draft includes banning the usage of palm oil in motor fuels from 2021. (Reporting by Emily Chow, Naveen Thukral, Gavin Maguire Editing by Kenneth Maxwell)