Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA)
- Malaysia and Pakistan established the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) on 8 November 2007. MPCEPA came into force on 1 January 2008.
- The MPCEPA encompasses liberalisation in trade in goods and services, investment, as well as bilateral technical cooperation and capacity building in areas such as sanitary and phytosanitary measures, intellectual property protection, construction, tourism, healthcare and telecommunications.
Trade in Goods
· Under MPCEPA both Malaysia and Pakistan will progressively reduce or eliminate tariffs on their respective industrial and agricultural products. Commitments by the countries are reflected in their Schedule of Commitments
· In order for the product to enjoy the preferential duties, it must fulfil the Rules of Origin criteria under MPCEPA which is a Qualifying Value Content of 40% or Change in Tariff Classification.
· The MPCEPA Is A Comprehensive Agreement And It Covers Liberalization Of Trade In Services As Well. Pakistan Offered Maximum Foreign Equity Participation Of 60% In All Sectors And There Are No Limitations On The Number Of Malaysian Employed Per Organization. Sectors Of Interest To Malaysia Include Professional Services, Construction And Related Engineering Services, Education Services And Telecommunication Services.
· The Agreement provides a framework to further facilitate cross-border investments between the two countries through commitments on:
o national treatment,
o most-favoured nation treatment,
o protection of investors and investments.
· While recognising each country’s sensitivities and development needs, the Agreement allows for flexibilities in scheduling the commitments.