The ongoing trade war between US and China is getting more intense. Recently, China imposed a 25-per cent tariff on US soy imports as a retaliation to USA’s plan to impose tariffs on US$50 billion of Chinese goods.
This move is expected to help Malaysian and other palm oil exporters in the region as the China may shift to crude palm oil (CPO). CPO is a direct competitor to soy in the edible oleins market and is a common substitute for soybean oil for use in the food-processing industry.
China already is Malaysia’s third largest export destination for CPO – with 1.92 million tonnes being exported to China last year.
China is the world’s largest soybean importer and the biggest buyer of US soybean, with trade estimated at US$14 billion last year. The trade ban on soy imports is expected to significantly benefit Malaysian and other palm oil producers in the region.
Gain more insights on palm oil exports and trade at CMT’s 10th Asia Sustainable Oil Palm Summit on 30-31 July, 2018 in Bali.
