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The United States has banned imports of palm oil from Malaysian company FGV Holdings following an investigation into allegations that it uses forced labor, the US Customs and Border Protection (CBP) agency said.
FGV, one of the world’s largest producers of crude palm oil, and some other suppliers of the oil used in everything from food and cosmetics to biodiesel, have long faced accusations from human rights groups of labor and employment abuses. human rights.
In response, FGV said that “it is fully committed to respecting human rights and defending labor standards.”
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 review their supply chain and ask a lot of questions about labor practices,” he said.
‘Concrete steps’
In a statement to Al Jazeera, FGV said it has taken “concrete steps in recent years” to improve its working practices.
The company said that its migrant workers, mostly from Indonesia and India, receive information on the terms of their employment, scope of work and their rights and responsibilities before leaving their home countries and upon arriving in Malaysia.
It also said that it pays its workers “at least the minimum wage” under Malaysian law, and has spent 350 million Malaysian ringgit ($ 84.4 million) in the past three years improving housing facilities for its plantation staff.
FGV also denied that it withholds its workers’ passports, adding that it has installed 32,350 safe deposit boxes for its staff to store their documents.
CBP’s Smith 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.
Procter & Gamble did not immediately respond to the Reuters news agency for 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 80 percent of the 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.
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