The US on Wednesday banned imports from a Malaysian palm oil giant whose products are found in numerous household goods over concerns that its workers face a litany of abuse.
The move against Sime Darby Plantation Bhd, one of the world’s biggest producers, marks the second time the US in the past few months blocked shipments from a Malaysian palm oil firm.
Palm oil is a common ingredient in items ranging from processed foods to cosmetics, with Malaysia and Indonesia producing 85 percent of the world’s supply.
Activists have long claimed that workers on plantations face abuse. They also blame the industry for driving destruction of rainforests to make way for plantations.
US Customs and Border Protection (CBP) said that there was evidence that Sime Darby workers face abuses including sexual and physical violence, withholding of wages, and movement restrictions.
The ban “demonstrates how essential it is for Americans to research the origins of the everyday products that they purchase,” CBP Acting Commissioner Mark Morgan said.
The decision means that all Sime Darby palm oil products are banned from entering US ports.
The company, which supplies major firms like Nestle SA and Unilever PLC, runs a network of sprawling plantations, and employs migrant workers from countries including Indonesia and Bangladesh.
Anti-trafficking group Liberty Shared early last year petitioned CBP to ban imports from the firm over concerns about labor abuse.
In a statement released yesterday, Sime Darby insisted that it was “committed to combating forced labor and has implemented robust policies to protect workers’ rights.”
It also pledged to work with US officials to address their concerns.
Shares in Sime Darby Plantation, whose annual exports to the US are worth about US$5 million, yesterday fell 3.5 percent in Kuala Lumpur following news of the ban.
In October, the US banned imports from another Malaysian palm oil producer, FGV Holdings Bhd, following a lengthy probe that found indications that its workers faced abuse.
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