Malaysia-New Zealand Trade Ties

Deputy Minister of International Trade and Industry Datuk Mukhriz Tun Dr Mahathir has said that Malaysia will sign the Free Trade Agreement (FTA) with New Zealand in October. This New Zealand-Malaysian FTA will come into force in January 2010. The agreement is in line with the ASEAN/New Zealand FTA that would also come into effect in January 2010.

AFTA and Regional FTA
"The agreement will be signed in Malaysia," he confirmed this to reporters after officiating a seminar in Kuala Lumpur on 'Opportunities from ASEAN Free Trade Area (AFTA) and Regional FTAs', organized by Malaysia External Trade Development Corporation.

On the FTA between Malaysia and the United States, Murkriz said Malaysian Government was still waiting for a fresh signal from the new government under President Barack Obama to move forward the agreement.

He said: "We want to see what new angles they may want to take." He stressed that both sides were still interested to pursue further the matter.

Mukhriz said the government was also exploring the possibility of having bilateral FTAs with other trading partners which will benefit the country.

At this moment, Malaysia is now actively negotiating bilateral deals with India, Chile and Australia.

Besides, Malaysia also has bilateral FTAs, in the form of economic partnership with Japan and Pakistan.

Preferential Duty Treatment
Mukhriz said the FTAs that Malaysia has entered into will not only open up new market activities for the local products, but also make the products price competitive due to the preferential duty treatment offered by trading partners.

At present, more than 60 per cent of Malaysia's global trade is concluded in the form of FTAs. These can eventually provide more than 3.2 billion people tax free market.

From July 2008 to June 2009, exports using preferential rates under the ASEAN Free Trade Area amounted to RM(M$) 10.61 billion compared with RM8.21 billion in the corresponding period of 2008.