Briefing on Tariff Reduction/Elimination Schedule
Kuala Lumpur, 1 April 2011 - The AMCHAM was present at the consultation, led by Mr. P. Ravidran, Senior Director, ASEAN Economic Cooperation, MITI, on the above mentioned subject. This round of consultations on each class of products is undertaken by the MITI with the various stakeholders to prepare the negotiations with the EU.
Malaysia and the EU will reduce and eliminate duties on 90% of the products in term of trade value in four stages: A (entry into force), B (3 years), C (5 years) and D (7 years). Tariffs will be reduced annually in a linear way until they reach 0%. For the remaining 10% which are sensitive goods, modalities are still under discussion.
For the Electronics & Electrical industry (Chapters 84-85), tariffs are already low or equal to 0 for a wide range of products. On the 10 most important tariff lines which represent 52% of the total imports for these chapters, tariffs are already at 0. The 10 most important tariff lines are based on the average imports by Malaysia from the EU in 2007, 2008 and 2009
Mr. Ravidran points out that this FTA is not only limited to tariffs, it is much more ambitious, it is a comprehensive agreement covering tariffs and non-tariff barriers as well as commitments on other trade related issues, notably procurement, competition and sustainable development.
On the http://trade.ec.europa.eu website, we learn that negotiations started on October 2010 and that 4 rounds are planned. The third and next round is schedule on 10-13 May 2011 and will take place in Brussels. Both parties hope to conclude the agreement by June 2012.