Hon Tim Groser
Minister of Trade

27 October 2009 Media Statement

Malaysia - NZ FTA boosts profile in vital market

Trade Minister Tim Groser says the Malaysia – New Zealand Free Trade Agreement (FTA) signed overnight in Kuala Lumpur will result in a significant boost in trade with this key South East Asian market.

“Malaysia’s large and growing population of more than 28 million people presents considerable opportunity for new and enhanced market access for New Zealand’s exporters, including in education, environmental, management consulting and veterinary services.

“Tariffs on 99.5 per cent of New Zealand’s current exports will be eliminated within seven years (by 2016) of entry-into-force. On full implementation the Malaysia FTA will provide duty-savings of over $10 million per year for New Zealand exporters.

Mr Groser is currently in Kuala Lumpur, and along with Prime Minister John Key is leading a business delegation of over 60 business leaders in support of the FTA.

“Malaysia is New Zealand’s eighth largest export destination, accounting for almost a billion dollars of exports in 2008. Exports to Malaysia have increased 80 percent since 2004, which is more than double the rate of New Zealand’s export growth to the rest of the world.

"New Zealand’s services trade with Malaysia has also expanded, particularly in the education sector with the number of Malaysian international students in New Zealand increasing by over 70 percent since 2003.

“Importantly, this FTA indicates that New Zealand and Malaysia are committed to keeping our markets open for business during challenging economic times,” Mr Groser said.

The FTA is scheduled to enter into force in 2010 once both countries have completed the required domestic approval processes.

Documents related to the agreement are available at http://mfat.govt.nz/Trade-and-Economic-Relations/Trade-Agreements/Ma

ENDS

© Scoop Media