KUALA LUMPUR - Malaysia's Cabinet has agreed to ratify the Comprehensive And Progressive Agreement For Trans-Pacific Partnership (CPTPP), the Trade Ministry said in a statement on Wednesday.
"The CPTPP places Malaysia in a strategic position, elevating our competitiveness in the global arena," the ministry said.
CPTPP is a free trade agreement that links Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The pact removes 95 per cent of tariffs between its 11 members.
Malaysia’s Ministry of International Trade and Industry (Miti) said the agreement was ratified following years of careful deliberation and consultation by the government.
“In light of the findings of the Cost-Benefit Analysis, it is clear that the benefits accruing from the ratification of CPTPP far outweigh any potential costs that may arise from the implementation of this Agreement,” it said in a statement.
“In sum, the CPTPP places Malaysia in a strategic position, elevating our competitiveness in the global arena.
“As a bloc that advances regional economic integration, the CPTPP is also a testament to the significance of the multilateral trading system,” it added.
Miti said the deal will broaden Malaysia’s access to new markets such as Canada, Mexico and Peru, which are not covered by any existing free trade agreements.
This will provide access to a wider range of raw materials at competitive prices and increase Malaysia’s attractiveness as an investment destination.
The pact will also offer technical assistance and capacity building programmes aimed at improving and developing local capabilities in key industrial areas such as automotives, chemicals and medical devices.
Under the CPTPP, by Jan 1 next year almost 100 per cent of Malaysian exports to member countries will enjoy duty-free treatment.
Exports to New Zealand and Canada will be duty-free in 2024 and 2029, respectively.
Meanwhile, high duties on key Malaysian exports to Canada and Mexico, which currently range from 15 per cent to 30 per cent will be eliminated immediately.
With regards to the exports of services, there will be greater mutual recognition of professional qualifications, licensing or registration between CPTPP countries, the ministry said.
“For example, Malaysian accountants, architects, construction managers, engineers, dentists, doctors, nurses, quantity surveyors, and veterinarians are expected to benefit from the facilitation mechanisms offered by the CPTPP, including enhanced mobility through transparent rules governing movement of professionals across borders,” said Miti. REUTERS, THE STAR/ASIA NEWS NETWORK