KUALA LUMPUR, Oct 27 2022 — The implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will place Malaysia in a strategic position as well as elevate the country’s competitiveness in the global arena.
The Malaysian Petrochemicals Association (MPA) president Akbar Md Thayoob said the association commended the efforts of the Ministry of International Trade and Industry (MITI) in completing the domestic procedures following the mandate received from the cabinet.
According to Akhbar, MITI has enabled the final submission of Malaysia’s Instrument of Ratification (IOR) for the CPTPP with the depositary in New Zealand to be executed on Sept 30, 2022.
He said the CPTPP Agreement has been ratified and implemented in stages since Dec 2018 by Australia, Canada, Japan, Mexico, New Zealand, Singapore, Vietnam and Peru.
“It will broaden Malaysia’s access to new markets such as Canada, Mexico and Peru, which are not covered by any existing Free Trade Agreement (FTA),” he said in a statement today.
He said Malaysian exporters would enjoy duty-free treatment on products such as automotive parts and components, plastics products, surgical gloves, rubber products, textiles and clothing, cocoa products and food items.
It is also encouraging to note that the UK and People’s Republic of China (PRC), Chinese Taipei, Ecuador and Costa Rica have also officially applied to join the CPTPP, allowing Malaysian exporters to gain wider and deeper market access opportunities, Akhbar said.
He said the cost-benefit analysis (CBA) done on the CPTPP projected that the total trade from Malaysia is expected to increase to US$655.9 billion in 2030.
On the other hand, he said exports are projected to reach US$354.7 billion in the same year with the trade balance remaining in strong surplus at 8.5 per cent of gross domestic product (GDP) for 2030.
Under the CPTPP, Akhbar said that almost 100 per cent of Malaysian exports to all CPTPP countries would enjoy a duty-free treatment by Jan 1, 2033.
According to him, as soon as the CPTPP enters into force for Malaysia, all Malaysia’s exports to Australia and Singapore markets would be without any duties.
He said all Malaysian products exported to New Zealand and Canada would be duty-free in 2024 and 2029, respectively.
Currently, he said duties on key Malaysian exports to Canada and Mexico range between 15 to 30 per cent.
“In essence, the CPTPP will co-exist with all other FTAs and will place Malaysia in a strategic position, elevating our competitiveness in the global arena,” he added.
— Akses Malaysia
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