The Malaysia-EFTA Economic Partnership Agreement: What You Need to Know
Malaysia recently signed a free trade agreement with the European Free Trade Association (EFTA), which comprises Switzerland, Norway, Iceland, and Liechtenstein. This agreement is expected to bring about significant economic benefits to Malaysia, particularly in terms of trade and investment.
What is the Malaysia-EFTA Economic Partnership Agreement?
The Malaysia-EFTA Economic Partnership Agreement (ME-EPA) is a comprehensive free trade agreement that covers trade in goods, services, and investment. It also includes provisions on intellectual property, competition, government procurement, and sustainable development.
Under the ME-EPA, Malaysia and the EFTA countries will eliminate tariffs on more than 90% of their trade in goods. This will benefit a wide range of industries, including automotive, chemical, pharmaceutical, and agricultural products.
In addition to the reduction of tariffs, the ME-EPA also provides for the liberalization of trade in services. This will create new opportunities for Malaysian service providers in areas such as telecommunications, transportation, and finance.
Who will benefit from the ME-EPA?
The ME-EPA is expected to benefit both Malaysia and the EFTA countries. For Malaysia, the agreement will provide a much-needed boost to its economy, which has been hit hard by the Covid-19 pandemic. The elimination of tariffs and the liberalization of trade in services will increase Malaysia`s competitiveness and attract more foreign investment to the country.
The ME-EPA will also benefit Malaysian consumers, who will have access to a wider range of goods and services at lower prices. This will help to reduce the cost of living and improve the standard of living for Malaysians.
For the EFTA countries, the ME-EPA will provide access to a market of more than 32 million people. This will create new opportunities for EFTA exporters in a range of sectors, including machinery, watches, and medical devices.
What are the next steps?
The ME-EPA has been signed by Malaysia and the EFTA countries, but it still needs to be ratified by each country`s parliament before it can come into force. Once ratified, the ME-EPA will provide a framework for economic cooperation between Malaysia and the EFTA countries for many years to come.
Conclusion
The Malaysia-EFTA Economic Partnership Agreement is an important milestone in Malaysia`s efforts to strengthen its economic ties with Europe. The agreement will provide significant benefits to both Malaysia and the EFTA countries, including the elimination of tariffs and the liberalization of trade in services. The ME-EPA is expected to create new opportunities for businesses and consumers in Malaysia and the EFTA countries, and to contribute to the economic growth and development of the region.