Free Trade Agreement In Malaysia

A free trade agreement (FTA) is an international agreement between two or more countries aimed at reducing or reducing barriers to trade and bringing economic integration closer together. With Malaysia`s population growing, there are many opportunities for growth and our free trade agreement is helping to lead the way. The agreement offers importers and exporters more than previous commitments under the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA). He stressed that, despite a number of risks, the RCEP agreement represents an important opportunity for economies that have been harmed during the pandemic. New Zealand has another trade agreement with Malaysia — AANZFTA, which includes Australia and other ASEAN countries. The abolition of customs duties allows the countries of the agreement to put their commercial products for free circulation. M. Mydin said the free trade agreement could lead to a risk of external dependence for countries with lower production capacity. In the first nine months of 2020, trade with FTA partners was 66.5%, or RM860.6 billion. Exports amounted to 483.29 billion.RM while imports amounted to 377.31 billion.RM.

«It also creates a way for consumers to get imported products at a lower cost. However, local producers can expect damages through the agreement as long as they do not participate in this competition. That is why India withdrew from the RCEP negotiations. Malaysia is one of our fastest growing export markets and our sixth largest trading partner. In 2014, mutual merchandise trade amounted to more than NZ$3 billion. .