Kuala Lumpur, October 27, 2022. The Malaysian Petrochemicals Association (MPA) fully supports Malaysia’s implementation of the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP). The Ministry of International Trade and Industry’s (MITI) commendable efforts in completing the domestic procedures following the mandate received from the Cabinet, has enabled the final submission of Malaysia’s Instrument of Ratification (IOR) for the CPTPP with the depositary in New Zealand to be executed on September 30, 2022.
The CPTPP Agreement has been ratified and implemented in stages since December 2018, by Australia, Canada, Japan, Mexico, New Zealand, Singapore, Viet Nam and Peru. It will broaden Malaysia's access to new markets such as Canada, Mexico and Peru, which are not covered by any existing Free Trade Agreement (FTA). Malaysian exporters will enjoy duty-free treatment on products such as automotive parts and components, plastics products, surgical gloves, rubber products, textiles and clothing, cocoa products and food items.
It is also encouraging to note that the UK and the People’s Republic of China (PRC), the Chinese Taipei, Ecuador and Costa Rica have also officially applied to join the CPTPP, allowing Malaysian exporters to gain wider and deeper market access opportunities.
The CBA done on the CPTPP projected that the total trade from Malaysia is expected to increase to USD655.9 billion in 2030. On the other hand, exports are projected to reach USD354.7 billion in the same year, with trade balance remaining in strong surplus at 8.5% of GDP for 2030.
Under the CPTPP, by 1 January 2033, almost 100 percent of Malaysian exports to all CPTPP countries will enjoy duty-free treatment. As soon as the CPTPP enters into force for Malaysia, all our exports to Australia and Singapore markets will be without any duties. In 2024 and 2029, all Malaysian products exported to New Zealand and Canada respectively will also be duty-free. Currently duties on key Malaysian exports to Canada and Mexico ranges between 15 to 30 percent.
In essence the CPTPP will co-exist with all other FTAs and will place Malaysia in a strategic position, elevating our competitiveness in the global arena.
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