MITI ready to help industries, exporters reap CPTPP’s numerous benefits
22 Dec 2022
The Ministry of International Trade and Industry (Miti) is prepared to assist and support Malaysian industries and exporters and help the rakyat reap the numerous benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect on Nov 29, 2022 for Malaysia.
The CPTPP free trade agreement (FTA) came into effect for Malaysia on Nov 29, 2022 and its comprehensive scope includes traditional market access areas as well as factors such as labour, environment, state-owned enterprises, government procurement, intellectual property, electronic commerce, and small and medium enterprises (SMEs).
In a statement on Thursday, Miti said Malaysia would benefit from preferential duty rates for goods that are exported to and imported from the eight CPTPP member countries — Australia, Canada, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam — that have implemented this agreement.
It said that the preferential duty rates taking effect immediately would be:
(a) Full duty-free treatment to all Malaysian exports entering Singapore and Australia.
(b) Duty-free treatment on 96% of our exports and tariff lines to New Zealand presently, which is set to increase to 100% by 2024. Notably, Malaysian products across all sectors can enter the New Zealand market at zero duty, except for products such as textiles and processed wood which will become duty-free by 2024.
(c) Malaysian exports to Japan are subject to duty-free treatment for 86% of tariff lines, which will increase to 100% by 2038.
(d) Duty-free treatment for 88% of Malaysian tariff lines to Vietnam, set to be at 100% by 2033.
Miti said the CPTPP would allow Malaysian exporters to benefit from duty-free treatment for the majority of tariff lines to three new markets, Canada, Mexico and Peru, with whom Malaysia did not have any prior FTA.
“Canada will progressively eliminate duties on the remaining tariff lines by 2029, while Mexico and Peru by 2033,” it said.
Miti said notable Malaysian exports that would clearly benefit from zero duty include automotive parts and components, textiles and footwear for the Mexican market.
“Other sectors are cocoa-based products, rubber products, palm oil and plastics for the Peruvian market,” it said.
Miti said for Malaysian businesses to enjoy CPTPP preferential tariffs, they must obtain a Certificate of Origin (CO) from the ministry.
“To qualify for the CO, Malaysian exporters to CPTPP countries are required to comply with the corresponding Rules of Origin (ROO) requirements,” it said.
Miti said inputs and raw materials sourced from all CPTPP countries are recognised as originating content.
“This enables companies to tap into diverse, more efficient and cost-effective regional supply chains.
“In facilitating ROO compliance, the CPTPP also presents exporters with multiple choices of Regional Value Content (RVC) calculation methods,” it added.
Source: Bernama
