The European Free Trade Association and Malaysia begin Fourth Round of Trade Negotiations

Posted by Reading Time: 4 minutes

In April, the European Free Trade Association (EFTA) held its fourth round of trade negotiations with Malaysia in Kuala Lumpur. The EFTA is made up of four countries: Iceland, Liechtenstein, Norway, and Switzerland.

Discussions on the free trade agreement (FTA) were originally launched in November 2012 and the first round of negotiations was held in March 2014. The EFTA and Malaysia also signed a Joint Declaration in July 2010.

During the current round of negotiations, areas of discussion included the following: goods, services, investment, rules of origin, trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, trade remedies, intellectual property rights, trade and sustainable development, competition, government procurement regimes, legal and institutional issues, and cooperation.

Related-Reading-Icon-Asean LinkRELATED: Malaysia GST: Implications for Manufacturers

The two sides also agreed upon action items and goals for the next round of negotiations, scheduled to be held in October of this year.

The EFTA and Malaysia are keen to boost their burgeoning trade partnership. In 2013, bilateral trade was worth almost US$2 billion – a 6.5 percent increase over the previous year. Trade has steadily increased between the EFTA and Malaysia since 2003, with only a brief downturn during the global financial crisis. Switzerland is Malaysia’s largest trading partner in the EFTA.

The top five EFTA imports from Malaysia are:

  • Electrical machinery
  • Machinery, mechanical appliances
  • Optical, medical, surgical instruments
  • Rubber, rubber articles
  • Plastic, plastic articles

The top five EFTA exports to Malaysia are:

  • Machinery, mechanical appliances
  • Pharmaceutical products
  • Electrical machinery
  • Clocks and watches
  • Optical, medical, surgical instruments

The EFTA also recently held its first round of trade negotiations with the Philippines. The FTA will cover similar areas as the one with Malaysia, and EFTA countries are especially interested in importing Philippine agricultural produce as well as other finished products, such as furniture.

Professional Service_CB icons_2015RELATED: Dezan Shira & Associates Pre-Investment and Entry Strategy Advisory

A full list of Malaysia’s trade agreements can be found here. The country’s membership in the ASEAN organization also places it in a prime trade position vis-à-vis a number of countries and regions, to see a full list of ASEAN related trade agreements, please see here. It is highly suggested that investors consult a professional services firm so that they can take full advantage of any FTAs or other beneficial agreements that the country they are operating in has signed.


About
Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asean@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

Related-Reading-Asean Book Title

Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.

An Introduction to Tax Treaties Throughout Asia
In this issue of Asia Briefing Magazine, we take a look at the various types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double tax treaties and free trade agreements – all of which directly affect businesses operating in Asia.

 

 

The 2015 Asia Tax ComparatorAB 1214 Cover small small
In this issue, we compare and contrast the most relevant tax laws applicable for businesses with a presence in Asia. We analyze the different tax rates of 13 jurisdictions in the region, including India, China, Hong Kong, and the 10 member states of ASEAN. We also take a look at some of the most important compliance issues that businesses should be aware of, and conclude by discussing some of the most important tax and finance concerns companies will face when entering Asia.