India and malaysia trade war
The goi or government of india has repeatedly objected to Malaysian Prime Minister Mahathir Mohamad speaking out against recent policies which critics say discriminate against Muslims.
India, the world's biggest buyer of edible oils, last week placed curbs on imports of refined palm oil and has informally asked traders to stop importing all kinds of palm oil from Malaysia, the world's second biggest producer and exporter of palm oil.
New Delhi could also restrict imports of petroleum, aluminium ingots, liquefied natural gas, computer parts and microprocessors from Malaysia.
Commerce Minister said that New Delhi had not imposed any curbs on imports from Malaysia and Turkey, and that the government was not contemplating any restrictions on the two countries.
The South Asian country buys mainly from Indonesia, which is expected to be the biggest beneficiary of the Malaysia-India dispute.
Mahathir criticised India's new religion-based citizenship laws, which critics say discriminate against Muslims, and its policies in the Muslim-majority region of Kashmir which is also claimed by Pakistan.
India was Malaysia's biggest buyer of palm oil in 2019, buying 4.4 million tonnes. In 2020, purchases could fall below 1 million tonnes if relations do not improve, Indian traders say.
To make up for the potential loss, Malaysian officials say they are trying to sell more to countries such as Pakistan, the Philippines, Myanmar, Vietnam, Ethiopia, Saudi Arabia, Egypt, Algeria, Jordan, Kazakhstan and Uzbekistan.
But replacing a massive buyer like India will not be easy, and there have been calls for both countries to talk it out putting aside any "personal or diplomatic ego".
The other concern for Malaysia is that following the signing of an initial trade deal between the United States and China. China could buy more soyoil from the United States and less Malaysian palm oil.
