CPTPP already benefiting Malaysian exporters, says FMM
18 Jan 2023
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) appears to be benefiting Malaysia since its implementation in November last year, says the Federation of Malaysian Manufacturers (FMM).
FMM said there has been growing interest by businesses to apply to the Ministry of International Trade and Industry (Miti) and the Royal Malaysian Customs Department to avail themselves of the tariff concessions under the CPTPP.
“These applications now number in the hundreds and many of these applications are for exports to the three new markets,” the federation said in a statement.
“We believe the high take-up rate by Malaysian exporters in a matter of weeks since the implementation of the CPTPP reaffirms the findings of the Cost and Benefit Analysis (CBA) published by Miti on July 25, 2022, which states that Malaysia has strong export capabilities in sectors such as electrical and electronic, palm oil, chemicals, optical and scientific equipment and plastics, all of which will benefit from the market opening in Canada, Mexico and Peru,” it said.
FMM noted that Canada has removed duties on 96.6% of its tariff lines, while Mexico offers duty-free treatment on 80% of its tariff lines, and Peru has eliminated duties on 86.2% of its tariff lines.
CPTPP, it said, provides exporters market access to these three new markets, as Malaysia has no free trade agreements with these countries.
Together with the Regional Comprehensive Economic Partnership (RCEP), which was implemented in March 2022, FMM said Malaysia’s implementation of CPTPP will improve the country’s competitiveness and attractiveness as an investment destination for global companies to use the nation as a gateway to both trade blocs.
Source: The Edge Markets