Malaysian chemical firms call on Government’s ratification of CPTPP

Illustrative image (Photo: malaymail.com)

Kuala Lumpur (VNA) – The Chemical Industries Council of Malaysia (CICM) on August 2 called on the country’s Government to soon ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to bring about benefits for its chemicals companies.

It said that the deal will open access and help boost exports for Malaysian chemicals players to Canada, Mexico and Peru via better price competitiveness following substantial elimination of tariffs.

At present, Canada imposes a tariff of up to 270%, Mexico 30% and Peru 9%, said CICM in a statement, adding that the high tariffs affect key exports to CPTPP countries, including organic and inorganic chemicals.

With the CPTPP, these tariffs will be fully eliminated by the year 2034 across all CPTPP countries.

According to the association, CPTPP countries accounted for almost 22% (11billion RM or 2.47 billion USD) of Malaysia’s chemical exports in 2019, with major export destinations being Singapore, Japan and Vietnam.

CICM said the deal can also increase investment attractiveness of Malaysia and spur development of local capabilities, especially in specialty chemicals by establishing high standards of protection for investors and further strengthening Malaysia’s competitive advantage./.

VNA