Malaysian palm oil sector to benefit from UK entry to CPTPP

Published 2023년 7월 19일

Tridge summary

Analysts believe that Malaysian palm oil production will benefit from the UK's entry into the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), as the UK has agreed to cut tariffs on palm oil immediately after joining the agreement. Malaysia and the UK have a strong bilateral trade relationship, and the UK's reliance on food imports makes it a potential market for Malaysian palm oil. The CPTPP could also attract China, which is in the process of joining the pact, and the UK's entry into the bloc could help Western countries bypass Chinese supplies of goods.

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Original content

Malaysian palm oil production will be one of the sectors that will benefit from the UK's entry into the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), analysts said. SPI Asset Management Managing Partner Stephen Innes said Malaysia had successfully pressed the UK to cut tariffs on palm oil - currently ranging from 12% to zero - immediately after entering into the agreement; this should increase exports to the UK. Bilateral trade between the two countries exceeded US$7.3 billion (33.4 billion yuan) in 2022, with a UK trade surplus of around US$786 million (3.5 billion yuan). The Malaysian Palm Oil Board expects palm oil exports to increase by 3.7% to 16.3 million tons in 2023 due to continued demand from importing countries. "The UK is not self-sufficient in food production; it imports 48% of its total food consumption and this share is growing. Therefore, as a food trading country, the UK relies on imports," Innes said. Dr. Mohd Afzanizam Abdul Rashid, Chief ...

Source: Oilworld