United States Banned Imports Of Malaysian Palm Oil
Malaysian palm oil producer FGV Holdings Berhad pledged to "clean up its name" on Thursday after the United States banned imports of its product on charges of forced labor and other abuse.
The U.S. Customs and Border Protection on Wednesday imposed sanctions on imports of the company's products, noting evidence of forced labor, including concerns about children and other abuses, such as physical and sexual violence.
The office took the move a few days after an AP investigation found that billions in palm oil production were plagued by millions of workers in Asia's poorest corners.
Palm oil is virtually impossible to avoid. It is often disguised on labels as an ingredient named under more than 200 names.
It is found in about half of the products on supermarket shelves and in most cosmetic brands. It is contained in paints, pesticides and pills. It is also found in animal feed, biofuels and even hand disinfectants.
As much as 85% of the world's palm oil production, worth about $ 65 billion, comes from Malaysia and Indonesia. The AP interviewed nearly 130 current and former employees of about two dozen palm oil companies from eight countries who worked on plantations in Malaysia and Indonesia.
Almost everyone complained about their treatment. Some claimed to have deceived them, threatened them, detained them against their will, or were forced to pay off unpaid debts. Others said they were regularly harassed by the authorities or detained in overcrowded government facilities.
FGV Holdings Berhad stated that all these issues had been the subject of public debate in the past, taking several steps since 2015 to remedy the situation.
"The FGV is disappointed with this decision, as we have taken concrete steps in recent years to meet our commitment to human rights and labor standards," the company said in a statement refusing to be involved in any way in the recruitment and employment of refugees.