Britain’s biggest trade deal since Brexit is facing claims of fueling deforestation as the economy opens up to Malaysian palm oil imports.
After a intense round of closing talks in Vietnam, the United Kingdom has been accepted into the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade bloc that will now have a total GDP value of £11 trillion.
The UK becomes the first non-founding member to join CPTPPwhose membership includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The deal is opened trade relations with Malaysia and Britain has liberalized tariffs palm oil imported from the country under the terms of the deal.
The relaxation has sparked widespread concern among environmentalists production of palm oil is widely accused of large amounts destruction of wildlife habitats.
Clare Oxborrow, senior sustainability analyst at campaign group Friends of the Earth, warned that the trade deal undermines the UK’s commitment to eradicating deforestation from its supply chains.
Ms Oxborrow said: “Many parts of South East Asia are heavily affected by deforestation, particularly due to palm oil production. With our natural world in a state of emergency, we must take stricter measures to ensure that products bought and sold in the UK comply with strict environmental and human rights laws.”
The UK will officially join CPTPP next year, once the legislation has been passed and ratified. The Treasury estimates the deal will be worth £1.8bn a year to the economy within ten years.
Other allowances made under the terms of the deal include reduced tariffs on imports of bananas from Peru, crab sticks from Singapore and rice from Vietnam.
Joining CPTPP opens up new opportunities for dairy farmers by providing new access to Canada, Mexico and Japan, as well as the UK’s automotive and digital industries.