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Free Trade Agreement Between Malaysia And Turkey

With regard to agricultural products, the contracting parties have asymmetrical eradication plans due to the sensitivity of the Turkish agricultural sector. In this area, at the end of the transitional period, 94% of Turkish exports and 47% of Turkish imports will benefit from duty-free access. In this sector, products classified as “highly sensitive” were excluded from plans to dispose of contracting parties. In addition, Turkey has granted a 30% tariff reduction for palm oil products. The agreement comes after the two countries began examining the feasibility of establishing a free trade agreement between them at the end of 2009. In early 2010, negotiations between the two countries began. Malaysia`s trade with Turkey increased by 50.2% to 8.42 billion.RM ($2.02 billion), up from $5.61 billion.RM in 2015. The MTFTA`s preferential tariffs on Malaysian palm oil give Malaysian palm oil a competitive advantage over other vegetable oils arriving in Turkey. Under the agreement, Malaysian palm oil is subject to a 21.8% lower import tariff than other competing oils, with an import tariff of 31.2%. The agreement contains obligations to liberalize trade in goods between the two countries. Malaysia and Turkey will gradually reduce or eliminate tariffs on a considerable number of goods traded between the two countries.

The negotiations aim to increase the volume of bilateral trade by $10 billion over the next three years. Trade between the two nations is currently $1.79 billion (2018). Currently, Indonesia has exported synthetic fibres, rubber products, wood products, oils and fatty products and many others. Malaysia and Turkey have signed a free trade agreement that is expected to boost trade to $5 billion by 2018. Currently, the free trade agreement covers only trade in goods, including market access, rules of origin, customs procedures and facilities, health and plant health measures, technical barriers to trade and trade assistance. It also includes chapters on economic and technical cooperation, transparency and dispute resolution. The agreement also includes an “evolving clause” (Article 14.3) which provides that one year after the agreement enters into force, the contracting parties will begin negotiations on trade in services and explanatory discussions on investments in order to broaden the scope of the free trade agreement. The free trade agreement between Malaysia and Turkey will allow preferential access to Turkish product markets on the Malaysian market and vice versa.

It will also facilitate trade through other means, including the removal of customs barriers and bureaucracy. The agreement also allows Malaysia to include tariff preferences “that were either higher or higher than the tariff preferences previously granted under Turkey`s Generalized Preference System (GSP), which were no longer available to Malaysia as of January 1, 2014,” Bernama said. On Thursday, Malaysia and Turkey reached a free trade agreement between the two countries in Ankara.

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