Palm oil trade shift as Malaysia likely to emerge as big winner with UK’s CPTPP membership approval
RBD Palm Oil
Published Feb 7, 2024
Tridge summary
The UK has become the twelfth member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement. The UK Trade and Agriculture Commission (TAC) has assured that the risk of increased palm oil imports from deforested land is low, as most importers adhere to the deforestation-free Roundtable for Sustainable Palm Oil (RSPO) standard. Additionally, Malaysia, a CPTPP member, enforces a mandatory deforestation-free standard, the Malaysian Sustainable Palm Oil (MSPO) standard. This could potentially boost the Malaysian palm oil sector, as the UK's CPTPP membership could lead to zero-tariff Malaysian palm oil exports to the UK.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
The United Kingdom successfully obtained membership to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement in July 2023 after two years of negotiations and receiving ratification from all existing member countries. This is expected to enter into force in the second half of this year, and will make the UK the twelfth CPTPP member – a major trade milestone for the country given its withdrawal from the European Union in 2020. However, there were concerns that the deal could lead to an increase of palm oil imports from deforested land. But new documentation from the UK Trade and Agriculture Commission (TAC) advising the Secretary of State for Business and Trade on CPTPP accession says this has been addressed, and suggests Malaysia could be a big winner. “The risk that CPTPP would lead to an increase in imports of palm oil from deforested land has been determined to be low for a variety of reasons,” TAC highlighted in its report. “The vast ...
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