Malaysia Trade Agreements: What You Need to Know
Malaysia is quickly becoming a hub for international trade, thanks in part to the numerous trade agreements the country has signed with other countries. These agreements, known as free trade agreements (FTAs), are designed to promote international trade by eliminating tariffs and other trade barriers. In this article, we’ll take a closer look at some of the most important trade agreements that Malaysia has signed and how they impact the country’s economy.
ASEAN Free Trade Area (AFTA)
One of the most important trade agreements that Malaysia has signed is the ASEAN Free Trade Area (AFTA). This agreement, which was signed in 1992, is between 10 Southeast Asian countries, including Malaysia. The goal of the AFTA is to create a single market and production base among its member countries. This means that goods can be traded freely among member countries without any tariffs or other trade barriers.
Malaysia-Australia Free Trade Agreement (MAFTA)
Another important trade agreement that Malaysia has signed is the Malaysia-Australia Free Trade Agreement (MAFTA). This agreement, which was signed in 2012, is between Malaysia and Australia. The MAFTA eliminates tariffs on many goods traded between the two countries, which promotes trade and increases economic growth.
Malaysia-New Zealand Free Trade Agreement (MNZFTA)
The Malaysia-New Zealand Free Trade Agreement (MNZFTA) was signed in 2009 between Malaysia and New Zealand. Like the MAFTA, the MNZFTA aims to promote trade by eliminating tariffs on many goods traded between the two countries. This agreement benefits both countries by increasing access to each other’s markets and promoting economic growth.
Trans-Pacific Partnership (TPP)
The Trans-Pacific Partnership (TPP) was a trade agreement that was signed by 12 countries, including Malaysia. However, the United States withdrew from the agreement in 2017, and without U.S. involvement, the TPP has yet to be fully implemented. The TPP is designed to promote free trade among its member countries and to eliminate barriers to trade.
Impact on Malaysia’s Economy
The trade agreements that Malaysia has signed have had a significant impact on the country’s economy. By eliminating tariffs and other trade barriers, these agreements have promoted trade and increased economic growth. In addition, these agreements have made it easier for Malaysian businesses to sell their goods and services in other countries, which has opened up new markets for them.
Conclusion
In conclusion, Malaysia has signed several important trade agreements that have had a significant impact on the country’s economy. The ASEAN Free Trade Area, the Malaysia-Australia Free Trade Agreement, the Malaysia-New Zealand Free Trade Agreement, and the Trans-Pacific Partnership are just a few of the agreements that have promoted free trade and increased economic growth. As Malaysia continues to sign new trade agreements, we can expect to see even more growth and development in its economy.