Malaysian Sustainable Palm Oil (MSPO) Standard Gains Recognition from UK’s Trade and Agriculture Commission
The Trade and Agriculture Commission (TAC) has affirmed in an official report that Malaysian palm oil meets sustainable standards, advocating for a zero-tariff rate and endorsing Malaysian Sustainable Palm Oil (MSPO) as a credible compliance tool under the UK's Environment Act 2021.
The Trade and Agriculture Commission (TAC), an expert advisory group to the UK Government, has concluded in an official report that Malaysian palm oil is sustainable and that a zero-tariff rate for Malaysian palm oil would be beneficial, a news that has undoubtedly been received well by stakeholders within the sustainable Malaysian palm oil industry.
In an official report, TAC experts assessed that “Malaysia operates a mandatory deforestation-free standard [MSPO]”, and so “there is a low risk that Malaysian palm oil exported to the UK would come from land that was deforested.” The TAC Report also recommends to the UK Government that the MSPO standard should be accepted as a proven compliance tool for the UK’s due diligence regulations established in the UK Environment Act 2021, which are currently being implemented.
Moreover, the expert analysis finds that the MSPO standard meets and exceeds the sustainability requirements mandated by UK legislation. It is clear from this detailed expert report that all domestic and international companies supplying the UK market can now have complete confidence in MSPO as a genuine verification tool for the UK market.
It is imperative to note the broader context surrounding the UK TAC report, particularly in light of the UK's recent accession to the Comprehensive and Progressive Agreement for a Trans-Pacific Partnership (CPTPP) in 2023, with Malaysia as a founding member.
The experts were asked to analyse Malaysian palm oil due to pressures exerted by some vested interests, who opposed palm oil’s inclusion in the CPTPP. Greenpeace and other traditionally anti-trade NGOs opposed the cuts in palm oil tariffs, claiming without evidence that deforestation could increase. The UK expert report has rejected this analysis, underscoring the victory of evidence-based analysis over misinformation.
In addition to support from experts, Malaysian palm oil has garnered political support at the highest levels of the UK Government as well. The UK’s Business & Trade Secretary, Rt Hon Kemi Badenoch MP, has rejected scaremongering about palm oil, explaining on British television Sky News that “palm oil is a great product. It is in so many of the things we use.”
As the clear “legality standard” for Malaysian palm oil, MSPO is a ready-made compliance tool and deserves to be formally recognised by the UK Government.
