MALAYSIA: RCEP Free Trade Agreement Enters Into Force
25 March 2022
The terms of the Regional Comprehensive Economic Partnership (RCEP) agreement came into force in Malaysia on 18 March 2022, according to a Malaysian Ministry of International Trade and Industry (MITI) press release. Malaysia will benefit from the eventual removal of 90% of tariffs between member nations, as well as the reduction of non-tariff trade barriers. The country will also enjoy an enhanced business environment, with new regulations on intellectual property protection, government procurement practices and e-commerce, and the removal of barriers to the services sector.
Malaysia and China have introduced mutual RCEP tariffs, and are expanding market opening measures based on the China-ASEAN Free Trade Agreement. China is imposing first-year tariff rates on some imports from Malaysia, while Malaysia has implemented some tariff reductions and exemptions. Examples of agricultural products affected include pineapple juice; canned pineapple; pepper; coconut juice; cocoa; and aquatic products. Chemical fibre; cotton yarn and fabrics; and stainless steel are also now benefiting from preferential tariff rates.
- Southeast Asia