Under the WTO, it allows free trade agreements with a proviso that tariffs are eliminated substantially on all trade. Malaysia has since embarked on a number of FTAs either regionally or bilaterally. Malaysia's objectives in pursuing FTAs are to seek better market access by addressing tariffs and non-tariffs barriers; further facilitate and promote trade, investment and economic development; enhance competitiveness of Malaysian exports and capacity building in specific targeted areas through technical cooperation and collaboration.
To date, Malaysia has signed several FTA with a few major trading partners namely, Malaysia-Japan Economic Partnership Agreement, ASEAN-China Free Trade Agreement and ASEAN-Korea Free Trade Agreement. Under the Agreement, tariffs for most products will be reduced or eliminated gradually following the schedule agreed by both parties.
ASEAN-CHINA FREE TRADE AGREEMENT (ACFTA)
The Agreement on Trade in Goods (TIG) of the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China has been signed on 29 November 2004. Under the TIG agreement, ... [ Read more ]
JAPAN-MALAYSIA ECONOMIC PARTNERSHIP AGREEMENT (JMEPA)
The Free Trade Agreement between Japan and Malaysia came into force on 13 July 2006 which provides the elimination of import tariffs on goods within 10 years. Tariffs on timber and timber products are among the products which will be gradually reduced or eliminated except for certain categories of plywood. [ Read more]