Malaysia ratified the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership in October 2022, becoming the 9th nation to have approved the deal.(Photo: Business Korea/VNA) Kuala Lumpur (VNA) – Malaysia is ready to assist industries, exporters, andpeople to reap the benefits of the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) which came into effect from 29 November 2022for Malaysia, according to the country’s Ministry of International Trade andIndustry (MITI).
TheCPTPP’s comprehensive scope includes traditional market access areas as well asfactors such as labour, environment, state-owned enterprise, government procurement, intellectual property, electronic commerce, and Small and MediumEnterprises (SMEs).
Ina statement released on December 22, MITI said that Malaysia will benefit frompreferential duty rates for goods that are exported to and imported from theeight CPTPP member countries that have implemented the agreement includingAustralia, Canada, Japan, Mexico, New Zealand, Peru, Singapore, and Vietnam.
MITIalso points out preferential duty rates that take effect immediately includingfull duty-free treatment to all Malaysian exports entering Singapore andAustralia; duty-free treatment of 96% of Malaysian exports and tariff lines toNew Zealand presently, which is set to increase to 100% by 2024.
Notably,Malaysian products across all sectors can enter the New Zealand market at zeroduty, except for products such as textiles and processed wood which will becomeduty-free by 2024.
Accordingto MITI, Malaysian exporters will benefit from duty-free treatment for themajority of tariff lines to three new markets - Canada, Mexico, and Peru - withwhom Malaysia did not have any prior free trade agreements.
Canadawill progressively eliminate duties on the remaining tariff lines by 2029, and Mexico and Peru by 2033.
MITIsaid notable Malaysian exports that would benefit from the duty exemptioninclude auto parts and components, textiles, and footwear for the Mexicanmarket.
It noted that businesses need to register and obtain a Certificate of Origin (CO)to enjoy the above incentives./.
