MALAYSIA: RCEP Free Trade Agreement Enters Into Force

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.