KUAL LAMPUR, Malaysia (CWBN)_The United States said it will ban all palm olive imports from one of the largest producers in the world, after finding indications of forced labour and other violations on plantations.
After a months-long investigation conducted by the US Customs and Border Protection’s Office of Trade, the agency issued an order against Sime Darby Plantation Berhad, which its owned by Malaysia.
According to Ana Hinojosa, an executive director of the agency, the investigation found reasonable indications of physical and sexual violence against workers, intimidation and threats, withholding of wages, debt bondage, restriction of movement and other abuses.
“Importers should know that there are reputational, financial and legal risks associated with importing goods made by forced labour into the United States,” Hinojosa said.
Accordingly, Sime Darby Plantation becomes the second Malaysian palm oil manufacturer to be subjected to a ban from the US, as Washington slapped the same ban on another Malaysian palm oil giant, FGV Holdings Berhad, just three months ago.
In fiscal year 2020, the United States imported US$ 410 million of crude palm oil from Malaysia, and it is reported that Malaysia and neighbouring Indonesia together produce about 85 per cent of the US$ 65 billion supply of the world’s most consumed vegetable oil, which can be found in animal feed, paints, pesticides, plywood, hand sanitizer and many more products on supermarket shelves.
Following a petition filed by non-profit groups and a law firm, The Associated Press conducted an in-depth investigation into labour abuses on plantations in the two countries, and reported everything from child labour, rape, trafficking and outright slavery.
During the investigation, the AP interviewed more than 130 current and former workers from two dozen palm oil companies, including Sime Darby, which supplies to several large corporations from Nestle to Unilever and L’Óreal.
Under Wednesday’s order, palm oil products or derivatives traceable to Sime Darby will be detained at US ports. Experts say that the ban should send a clear message to Asian and Western financial institutions which have helped support the industry, since ties to forced labour could have serious consequences for banks and lenders as well.
