Malaysia ready to assist enterprises, people reap CPTPP benefits

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, and people to reap the benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which came into effect from 29 November 2022 for Malaysia, according to the country’s Ministry of International Trade and Industry (MITI).

The CPTPP’s comprehensive scope includes traditional market access areas as well as factors such as labour, environment, state-owned enterprise, government procurement, intellectual property, electronic commerce, and Small and Medium Enterprises (SMEs).

In a statement released on December 22, MITI said that Malaysia will benefit from preferential duty rates for goods that are exported to and imported from the eight CPTPP member countries that have implemented the agreement including Australia, Canada, Japan, Mexico, New Zealand, Peru, Singapore, and Vietnam.

MITI also points out preferential duty rates that take effect immediately including full duty-free treatment to all Malaysian exports entering Singapore and Australia; duty-free treatment of 96% of Malaysian exports and tariff lines to New Zealand presently, which is set to increase to 100% by 2024.

Notably, Malaysian products across all sectors can enter the New Zealand market at zero duty, except for products such as textiles and processed wood which will become duty-free by 2024.

According to MITI, Malaysian exporters will benefit from duty-free treatment for the majority of tariff lines to three new markets - Canada, Mexico, and Peru - with whom Malaysia did not have any prior free trade agreements.

Canada will progressively eliminate duties on the remaining tariff lines by 2029, and Mexico and Peru by 2033.

MITI said notable Malaysian exports that would benefit from the duty exemption include auto parts and components, textiles, and footwear for the Mexican market.

It noted that businesses need to register and obtain a Certificate of Origin (CO) to enjoy the above incentives./.