« I am pleased to see that the EU has responded by setting up a working group with Asean to solve this problem. We hope that this problem will be resolved by mutual agreement, as we do not rule out further measures that could have an additional impact on trade relations with certain EU countries, » he said. « In any free trade agreement, both sides must get what we call the « possible area of agreement. » Ensuring better access for EU exporters to the dynamic ASEAN market is an EU priority. Negotiations for a trade and investment agreement between the region and ASEAN began in 2007 and were interrupted by mutual agreement in 2009 to relax a bilateral negotiating format. These bilateral trade and investment agreements were designed as building blocks for a future agreement between the regions. However, International Trade and Industry Minister Datuk Darell Leiking said Malaysia continued to promote open trade and recognized the importance of bilateral and multilateral trade cooperation. The EU-managed GSP system is a separate trade instrument from MEUFTA. Malaysia`s GSP exports to the EU will continue to benefit from tariff concessions under the scheme. Malaysia has also asked the EU to review SPG Plus benefits under MEUFTA.
Trade in goods between EFTA states and Malaysia totaled $1.64 billion in 2019. Exports from EFTA countries, totalling $814 million, were mainly made up of pharmaceuticals and machinery. Although free trade negotiations between the EU and Malaysia have been frozen, a Sustainable Impact Assessment (AIS) has been launched to support free trade negotiations between the two partners. The ASA will assess the potential impact of the trade and trade provisions of the proposed free trade agreement on the economic, social, human rights and environmental aspects in each trading partner and in other countries concerned. The EU was Malaysia`s third largest trading partner in 2016, after China and Singapore. In 2016, trade with the EU increased by 0.4% to reach 149.1 billion .RM. To learn more about the trade in goods between EFTA and Malaysia, click here. The ninth round was the first full round of negotiations since March 2017, following the change of government that followed Malaysia`s parliamentary elections in spring 2018. Then there was a reassessment of trade policy priorities on the Malaysian side. The Malaysia-EU Free Trade Agreement (MEUFTA) is Malaysia`s latest bilateral initiative with the European Union.
MEUFTA is a preferential trade agreement that aims to facilitate the free movement of goods, services and investment between Malaysia and the EU, which remains the world`s largest economic bloc. The speech was read by Datuk Seri Norazman Ayob (pictured) deputy secretary general of the Ministry of International Trade and Industry. The round allowed expert groups to take stock and pave the way for further negotiations in all areas under discussion. These include trade in goods (including stones for industry and agricultural products), health and plant health measures, technical barriers to trade, rules of origin, trade facilitation, trade, investment, legal and horizontal issues, competition, intellectual property rights, public procurement, cooperation and trade and sustainable development.