The possible suspension follows an April visit by EU health inspectors to Malaysia's seafood processing plants, reports Business Week.

"The outcome is still under consideration," Geert Anckaert, a senior official at the European Commission office here, told The Associated Press. He added that a decision will be made by June 18, but declined to give details.

EU officials had in 2005 discovered shortfalls in the safety of Malaysian seafood exports, but subsequently launched a programme to help educate local officials about EU's health regulations, Anckaert said.

The Star daily, citing an EU draft on the matter, said two-thirds of Malaysian vessels and establishments visited didn't comply with the EU's strict hygiene and other regulations on fishery imports.

The EU is also concerned about a lack of traceability and countermeasures to check the spread of diseases, the report said.

A spokesman for Malaysia's Fisheries Department, who declined to be named citing protocol, said there had been complaints on the way fish and seafood were being transported to ports. One example was a lack of wash basins onboard.

Noraini Mohamad Othman, a health ministry official in charge of food safety, said authorities were addressing the issues, but declined to comment further.

Last year, Malaysia exported fish and other aquatic products worth 102 million euros to Europe, according to EU statistics. Some 40 to 50 Malaysian companies export seafood to Europe.

www.fishupdate.com is published by Special Publications. Special Publications also publish FISHupdate magazine, Fish Farmer, the Fish Industry Yearbook, the Scottish Seafood Processors Federation Diary, the Fish Farmer Handbook and a range of wallplanners.

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