Malaysia denies withdrawing option to file WTO suit against EU on palm oil

KUALA LUMPUR, Feb 14 (Reuters) - Malaysia has not retracted its option to file a World Trade Organization (WTO) suit against European Union (EU) restrictions on palm oil-based biofuel, the minister in charge of palm oil said.

Minister Teresa Kok said a Reuters report on Wednesday misquoted her as saying that Malaysia no longer plans to file the suit and will instead seek to convince the EU to change its treatment of the crop in a review scheduled for 2021.

"We continue to view the Delegated Regulation as a discredit to the Malaysian palm oil industry's commitment towards mandatory sustainability since it creates additional trade barriers and impedes our sustainability efforts throughout our palm oil supply chain," she said in a statement on Friday.

Kok said she had requested a review of the Delegated Regulation.

The review process is scheduled to take place soon and should be completed by June 2021, she said.

(Reporting by Mei Mei Chu; editing by Jason Neely)