Malaysia and EU inks Free Trade Agreement paving
According to EUROCHAM Malaysia, Malaysia will be more appealing to European businesses as a centre for trade and investment operations. The EU-Malaysia Partnership and Cooperation Agreement (EU-MY PCA) between the EU and Malaysia was signed, according to a statement issued on January 3 by EUROCHAM Malaysia.
Free trade agreements (FTAs) have shown to be one of the most effective strategies to expand the overseas markets available to European exporters, according to EUROCHAM.
The FTA was ratified at the first EU-ASEAN Commemorative Summit in Brussels on December 14, 2022, which according to EUROCHAM was a key turning point in the bilateral relations between the EU and Malaysia.
The agreement establishes the groundwork for mutually beneficial cooperation in several policy areas, including the environment, transportation, trade, and employment, according to EUROCHAM.
The EU-MY PCA, in the Chamber's opinion, opens a viable road for resuming negotiations on the EU-Malaysia free trade agreement (MEUFTA). MEUFTA is a preferential trade agreement that aims to make it easier for Malaysia and the EU to move products, services, and investments freely.
The MEUFTA includes market access for goods, services, investments, intellectual property rights, and sustainability development among its 16 subject areas, which are divided among 13 working groups.
As it will enhance commercial prospects for all Malaysian industries, expand technology and information exchange, as well as significantly raise EU foreign direct investment, EUROCHAM recommended the Malaysian government to formally restart the MEUFTA discussion process.