US bans palm oil imports from FGV over labour issues

Malaysian palm oil company FGV Holdings has had its imports banned by the US, following an investigation by the US Customs and Border Protection (CBP) agency that it uses forced labour.

Read: Palm oil giant pledges reform after child labour probe

FGV, the world’s largest crude palm oil producer, and some other suppliers of the oil used in everything from food to cosmetics to biodiesel have long faced allegations from rights groups over labour and human rights abuses.

The US agency said the ban was the result of a year-long investigation that revealed signs of forced labour such as abuse of the vulnerable, deception, physical and sexual violence, intimidation and threats, and retention of identity documents.

The investigation also raised concerns that forced child labour was potentially being used in FGV’s production processes, CBP said in a statement, adding that the ban would come into effect immediately.

Indonesia and Malaysia are the two largest producers of palm oil and the industry has also been blamed for deforestation and the destruction of natural habitats.

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, the agency said.

The CBP ban comes after rights groups called on US authorities last year to investigate FGV over concerns about forced labour and human trafficking on its plantations.

About 84% of palm plantation workers in Malaysia, or some 337,000 workers, are migrants from countries including Indonesia, India and Bangladesh.

Anti-trafficking group Liberty Shared submitted a petition to CBP in April against another Malaysian palm oil producer, Sime Darby Plantation, over alleged labour abuse.

The company said in July it had asked the rights group for more information and that it would swiftly address any breaches following a thorough investigation.