June 20, 2008

Malaysia has suspended seafood exports to the EU with immediate effect to avoid getting banned for failing European health standards.

Malaysia's health ministry said all seafood companies have been told to stop their exports to the EU since Tuesday (June 17, 2008) until they comply with the health standards.

The ministry did not say how long the suspension would be in place, but a ministry official said companies would be reviewed six weeks later.

The suspension is expected to cause losses in the millions per month, affecting a chain of businesses involved in the industry, according to a source.

The source also said how soon the seafood companies could resume export would depend on how fast the health authorities can step up enforcement measures to comply with EU standards.

The annual value of Malaysian seafood exports to the EU is RM1.5 billion (US$460 million).

In addition, five EU member states have promised to appeal on Malaysia's behalf against the ban.