Malaysia And New Zealand Strengthen Ties
Malaysia And New Zealand Strengthens Ties with Comprehensive Free Trade Agreement
Kuala Lumpur, 30 July 2010 - The Malaysia-New Zealand Free Trade Agreement (MNZFTA) will come into effect on 1 August 2010. A comprehensive agreement, the MNZFTA covers liberalisation of trade in goods, trade in services, investment and economic cooperation. It is Malaysia third bilateral FTA after Japan and Pakistan and extends Malaysia’s FTA network to the Oceanic region.
The FTA marks another milestone in Malaysia - New Zealand economic relations and value-adds to the benefits shared from the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) implemented on 1 January 2010.
Under the Agreement, Malaysia and New Zealand will progressively reduce or eliminate tariffs on their respective industrial and agricultural products by 2016. Malaysian exporters will enjoy free duty on cocoa products, carpet, tyres, margarine, steel wire, iron products and wood furniture. Imports from New Zealand into Malaysia will enjoy zero or lower duties for paper, plastics, automotive components, veneer, and chemical products.
For Trade in Services, MNZFTA offers opportunities for professionals from both countries to extend their services in each other’s market. The Agreement also outlines commitments on protection of investment and economic cooperation.
The Malaysian business community is encouraged to take full advantage of the opportunities offered under this comprehensive FTA. The FTA creates an attractive operating environment for the business community of both countries to further strengthen their bilateral trade and economic linkages on a long term basis.
The text of MNZFTA with schedules of commitments on goods and services is available on MITI's website at www.miti.gov.my.
International Trade and
30 July 2010
The entry into force of the Agreement follows the conclusion of negotiations between Malaysia and New Zealand in May 2009 in Kuala Lumpur, after ten rounds of negotiations which began in May 2005. The MNZFTA was signed by YB Dato’ Mustapa Mohamed, Minister of International Trade and Industry Malaysia and Hon. Tim Groser, Minister of Trade New Zealand on 26 October 2009 in Kuala Lumpur.
Malaysia's total trade with New Zealand in 2009 amounted to US$1 billion (RM3.5 billion), with exports of US$0.54 billion (RM1.9 billion) and imports of US$0.47 billion (RM1.6 billion). Trade for January to May 2010 amounted to US$627.1 million (RM2.1 billion) comprising exports of US$384 million (RM1.3 billion) and imports of US$243.1 million (RM0.8 billion).
Major exports to New Zealand in 2009 were:
• electrical and electronic
• chemical and chemical products;
• processed food;
• manufactures of metal; and
• machinery appliances & parts.
Major imports from New Zealand in 2009 were:
• processed food;
• paper and pulp products;
• chemicals and chemical products;
• machinery appliances & parts; and
• Manufactures Of Metal.