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KUALA LUMPUR (Reuters) – The United States has banned imports of palm oil from FGV Holdings Bhd
Following an investigation into allegations that he uses forced labor, US Customs and Border Protection (CBP) said Wednesday.
FGV, the world’s largest producer of crude palm oil, and some other suppliers of the oil used in everything from food to cosmetics to biodiesel, have long faced accusations from human rights groups of labor and human rights abuses.
FGV did not immediately respond to requests for comment.
The US agency said the ban was the result of a year-long investigation that revealed signs of forced labor such as abuse of vulnerable people, deception, physical and sexual violence, intimidation and threats, and withholding of identity documents.
The investigation also raised concerns that forced child labor was potentially being used in FGV production processes, CBP said in a statement, adding that the ban would take effect immediately.
“The use of forced labor in the production of such a ubiquitous product allows companies to profit from the abuse of vulnerable workers,” said Brenda Smith, Executive Assistant Commissioner for CBP’s business office.
Indonesia and Malaysia are the two largest palm oil producers and the industry has also been blamed for deforestation and the destruction of natural habitats.
Smith said CBP had received allegations surrounding the broader palm oil industry and asked US importers to investigate the labor practices of their suppliers.
“I can’t be more specific on this point, but I would suggest that US importers doing business with palm oil producers take a look at their supply chain and ask a lot of questions about labor practices,” he said.
US consumer goods giant Procter & Gamble, which has a joint venture with FGV, should take the ban “seriously” if it is an importer of its palm oil products, Smith said.
Procter & Gamble did not immediately respond to requests for comment.
The CBP ban comes after human rights groups asked US authorities last year to investigate FGV over concerns about forced labor and human trafficking on its plantations.
About 84% of palm plantation workers in Malaysia, or some 337,000 workers, are immigrants from countries such as Indonesia, India and Bangladesh.
Anti-trafficking group Liberty Shared filed a petition with CBP in April against another Malaysian palm oil producer, Sime Darby Plantation., for alleged labor abuses.
The company said in July that it had asked the rights group for more information and would promptly address any violations after a thorough investigation.
(Reported by Liz Lee in Kuala Lumpur and David Lawder in Washington; edited by Louise Heavens and Emelia Sithole-Matarise)
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