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Thursday, 27 December 2012

Malaysia-Australia FTA To Be Implemented Next Month

KUALA LUMPUR, Dec 27 (Bernama) -- The Malaysia- Australia Free Trade Agreement (MAFTA) will come into effect on Jan 1, 2013.

The agreement was signed on May 22, 2012, after 11 round of negotiations, Ministry of International Trade and Industry (MITI) said in a statement here today.

The scope of commitments under MAFTA provided a more liberal and predictable operating environment for the business community of both countries, it said.

Under MAFTA, Malaysia will progressively reduce or eliminate tariffs on an agreed list of industrial and agricultural products.

Most of the tariff reduction or elimination will be undertaken on Jan 1, 2013, and subsequently on Jan 1 every year until 2019.

MAFTA will benefit Malaysian exporters as Australia will eliminate 100 per cent of its import duties next month.

"This is the first FTA under which Malaysia will be obtaining immediate tariff elimination on all products from an FTA partner," said MITI.

"In addition to complementing the Asean-Australia-New Zealand FTA, MAFTA will open up new market opportunities for both countries and enhance trade and economic relations between the two countries," it added.

Under MAFTA, Australia will allow Malaysians to wholly-own operations in professional sectors such as legal, accounting, architecture, taxation, dental, veterinary, engineering, urban planning, landscape architecture and management consulting services.

In turn, Malaysia is offering commitments for increased Australian participation in education, telecommunication and financial services, MITI said.

MAFTA is Malaysia's sixth bilateral FTA, following the conclusion of similar agreements with Japan in 2005, Pakistan (2007), New Zealand (2009), India (2011) and Chile (2010).

MAFTA also seeks to promote increased economic cooperation in the form of technical programmes mainly in the areas of automotive, tourism, agriculture, e-commerce and clean coal technology.

Trade between Malaysia and Australia grew by 11.1 per cent to RM38.49 billion in 2011 from RM34.2 billion in 2010.

Exports to Australia in 2011 totalled RM25.68 billion and imports amounted to RM12.81 billion.

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