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Malaysia, the world's second largest palm oil producer, on Wednesday said it will take legal action with the World Trade Organisation against the European Union's "anti-palm oil campaign" via a dispute settlement mechanism.
EU policies under its Delegation Regulation restricts free trade practices, Malaysian Plantation Industries and Commodities Minister Mohd Khairuddin Aman Razali said in a statement.
Malaysia will also act as a third party in Indonesia' WTO case against the EU, he said.
Neighbours Indonesia and Malaysia together produce 85% of the world's palm oil.
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