20 September 2024
KUALA LUMPUR: Malaysia has officially signed its first bilateral trade agreement with the United Kingdom (UK) through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
This agreement will provide Malaysia with duty-free access to 94 percent of UK tariff lines by the end of the year.
According to Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of Investment, Trade and Industry (MITI), Malaysia has joined six other countries—Japan, Singapore, Chile, New Zealand, Vietnam, and Peru—that have completed the necessary in-country ratification process for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The Agreement is expected to come into effect by the end of 2024 for the UK and all parties that have ratified it.
“This marks a significant milestone as it represents Malaysia’s first bilateral Free Trade Agreement with the UK,” the Minister stated.
He emphasized that once the CPTPP takes effect for the UK, 94 percent of tariff lines will provide Malaysian exports with immediate duty-free access.
Key sectors set to benefit include palm oil, cocoa, rubber, electronics and electrical (E&E) products, chemicals, as well as machinery and equipment.
“With the UK’s entry, the CPTPP will collectively represent a gross domestic product (GDP) of US$15.4 trillion, accounting for 15 percent of global GDP,” he added.
As Malaysia embarks on this inaugural bilateral Free Trade Agreement with the UK, the country is optimistic about enhancing access for Malaysian exports to a UK economy that surpassed US$4 trillion in 2023.
“Malaysia’s membership in the CPTPP, recognised as the gold standard for trade agreements, has significantly bolstered our competitiveness, fostered investor confidence, and encouraged deeper integration of our exporters into the global supply chain,” he concluded in a statement.
The CPTPP members include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
