miti - perjanjian perdagangan bebas, fta (awana genting, 19 mei 2012)
TRANSCRIPT
MALAYSIA'S
INVOLVEMENT IN FTAs
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY, MALAYSIA
PRESENTATION OUTLINE
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
WHAT IS FTA?
MALAYSIA’STRADE POLICY AND APPROACH
RATIONALE FOR PURSUINGTHE FTAs
STRATEGIES IN NEGOTIATINGTHE FTAs
OVERVIEW OF MALAYSIA’S INVOLVEMENT IN FTAs
SCOPE OFTHE FTA NEGOTIATIONS
BENEFITS OFTHE FTAs
IMPACTS AND CHALLENGES ARISING FROMTHE FTAs
MITIGATINGTHE IMPACTS OFTHE FTAs
WHAT IS FTA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
A Free Trade Agreement (FTA) is a legally binding
and comprehensive agreement between two or more
countries where member countries provide each other
more favourable treatments such as:
Lower or zero tariff for export of goods;
Relaxed or removal of quantitative import
restrictions;
Hassle free customs procedures;
Improved market access for various services;
Easier entry for businessmen; and
Better terms for investment
TRADE POLICY AND APPROACH
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
OBJECTIVE - Liberal and Fair
Global Trading Environment
APPROACH - Anchored on
the Rules-Based Multilateral
Trading System – WTO
Complemented by regional and
bilateral FTAs – “Building Blocks”
RATIONALE
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
Building Blocks
First Mover Advantage
Services Trade and Cross-Border Investment
Competitive Production Hub
Economic and Technical Cooperation and Collaboration
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
Engaging with our Major Traditional Trading Partners – ASEAN, Japan, Korea, US,
EU
Engaging new and emerging markets – China, India,
Pakistan, Chile, Turkey and the GCC
Consolidating network of FTAs into region-wide FTAs –
ASEAN+1, ASEAN+3, ASEAN+6 and TPP
STRATEGIES
7
STATUS/TYPE REGIONAL BILATERAL
CONCLUDED ASEAN Free Trade Area (AFTA)ASEAN-China ASEAN-ROKASEAN-Japan Comprehensive Economic Partnership (AJCEP)ASEAN-India (Goods)ASEAN-Australia-New Zealand
Malaysia-Japan Economic Partnership Agreement (MJEPA)Malaysia-PakistanComprehensive Economic Partnership Agreement (MPCEPA) Malaysia-New Zealand Free Trade Agreement (MNZFTA)Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA)Malaysia-Chile Free Trade Agreement (MCFTA)Malaysia-Australia Free Trade Agreement (MAFTA)
UNDER NEGOTIATIONS ASEAN-Japan (Investment and Services)ASEAN-India (Investment and Services)Trans-Pacific Partnership (TPP) Agreement
Malaysia-TurkeyMalaysia-EUGulf Cooperation Council (Framework Agreement)
FOR CONSIDERATION ASEAN+3 (Japan, China and Korea)ASEAN+6 (Japan, China, Korea, Australia, New Zealand and India)
Malaysia-Bangladesh
MALAYSIA’S INVOLVEMENTIN FTAs
8
CHINAKOREA
JAPAN
INDIA
AUSTRALIA
NEW ZEALAND
ASEAN
MALAYSIA’S CONCLUDED FTAs
60% of Malaysia’s global trade isunder preferential trade
CHILE
MALAYSIA’S INVOLVEMENT IN FTAs
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
9
PERU
TURKEY
EUUnited States
CHILEAUSTRALIA
NEW ZEALAND
GCC
More than 80% of Malaysia’s global trade will be under preferential trade
TPP
SINGAPORE
VIET NAM
BRUNEI
MALAYSIA’S CONCLUDED FTAs
MALAYSIA’S INVOLVEMENT IN FTAs
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
SCOPE OF NEGOTIATIONS
TRADITIONAL
AREAS
• GOODS
• RULES OF ORIGIN
• SPS
•TBT
• SERVICES
• INVESTMENT
• ECOTECH
NEW AREAS
• GP
• COMPETITION
• IPR
• LABOUR
• ENVIRONMENT
21ST CENTURY
• REGIONAL
INTEGRATION
• REGULATORY
COHERENCE
• COMPETITIVENESS
• SUPPLY CHAIN
• SME
• MINISTRY OF INTERNATIONAL TRADE AND INDUSY MALAYSIA
BENEFITS OF THE FTAs
Malaysian products enjoylower or zero tariff vis-à-vistheir competitors that haveyet to establish the FTAs
Better access through removal of NTBs
and establishment of MRAs
FTAs create larger markets:
ASEAN (570 million population); ASEAN+China (1.9 billion); ASEAN+Korea (618.2 million) ASEAN+Japan (697.8 million) ASEAN+India (1.7 billion); ASEAN+Australia+New Zealand
(595.5 million); TPP (500 million, possibly expanding
to 2.7 billion)
Cummulation of ROO
MARKET
ACCESS
A SINGLE, INTEGRATED MARKET
Uniform Rules of
Origin (ROO)
12
ASEAN- CHINA FTA : EXTRACT OF TARIFF (CHINA)
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
13
ASEAN- CHINA FTA : EXTRACT OF TARIFF (CHINA)
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
14
MICECA : EXTRACT OF TARIFF (INDIA)
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MLAYSIA
BENEFITS OF THE FTAs
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MLAYSIA
4 MODES OF SUPPLY
MODE 1 : CROSS BORDER SUPPLY MODE 2 : CONSUMPTION ABROAD
The service crosses the borderindependent of the supplier or consumer
The consumer crosses the border (non-resident) in the country where the serviceis consumed
Services provided through informationand communication technology orpost/mail
Examples:training programmes for foreigners (non-residents), tourism
Examples:market research reports, tele-medicine anddistance learning (e-learning)
Covers also the movement of consumer’s property
Example: sending machinery equipments for repair
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MLAYSIA
… 4 MODES OF SUPPLY
MODE 3 : COMMERCIAL PRESENCE MODE 4 : MOVEMENT OF NATURAL PERSONS
The supplier of the services:
• Locally established affiliate, subsidiaryor representative office with foreign equity participation; and
• Could be incorporated under local laws and employing local personnel
The supplier of the services is anindividual, staying in the country on atemporary basis (non-resident)
Examples:
local offices of multinational servicesfirms
Examples:
independent service supplier (individualconsultant, health worker) and employees ofa service supplier (expatriates)
EXAMPLES OF CONCESSION IN
TRADE IN SERVICESMALAYSIA-
JAPAN
(MJEPA)
Japan will accord to Malaysia the same treatment as that given to
other FTA partners i.e. Japan offers a wide range of sectors
including all modes of supply.
Malaysia will have market access in sectors of interest such as :
• business and professional education
• tourism and travel related services communication
• health related and social services
MALAYSIA-
PAKISTAN
(MPCEPA)
Pakistan’s offer to Malaysia include:
• Maximum foreign equity participation of 60 per cent in all sectors;
• No limitations on the number of Malaysians employed;
• Sectors of interest to Malaysia include professional services,
construction and related engineering, education and
telecommunication services.
ASEAN-
KOREA
(AKFTA)
Korea’s offers include sectors such as:
• business telecommunication
• finance computer-related
• construction transport
• research and development education
• environment distribution
• MINISTRY OF INTERNATIONAL TRADE AN INDUSTRY MALAYSIA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
INVESTMENT: THE FRAMEWORK
Liberalisation
2 components
Protection
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MLAYSIA
BENEFITS OF THE FTAs
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
IMPACTS OF THE FTAs
TRADE PERFORMANCE WITH FTA
PARTNERS ARE ENCOURAGING
•Total Trade through FTAs outperformed Global Trade
• Exports outperformed Imports
• Improved Balance of Trade
• 2009 Economic Slowdown – Trade with
all Partners were affected; FTA Partners less so!
• Increased Investments
• Increased Utilisation of the FTAs
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
CHALLENGES ARISING FROM THE FTAs
Increased competition for domestic industry due to
import duties reduction/elimination
Continuous upgrade to new innovation to
to remain competitive
Re-evaluate and rationalisebusiness operations and
production processes
Lack of awareness on the benefits of the FTAs
Rules and procedures on the requirement
of the Certificate of Origin
MITIGATING THE IMPACTS/CHALLENGES
• Longer Transition Periods
• Safeguard Mechanisms
• Dispute Settlement Mechanism
• Review provisions
• Option to terminate
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
2010 :
• 99% of products under AFTA are duty free
• 90% of products under ASEAN-China and ASEAN Korea FTAs are duty free
• ASEAN-India, ASEAN-Australia-New Zealand and Malaysia-New Zealand entered into force and commence tariff reduction/elimination
2011 :
MICECA entered into force and commence tariff reduction/elimination
25 Feb 2012 :
MCFTA entered into force and commence tariff reduction/elimination
IMPORTANT MILESTONES
TRADE PERFORMANCE WITH FTA PARTNERS
2008- 2011 (Value in RM Billion)
*For Japan, New Zealand and India, trade figures include both bilateral and regional FTAs with ASEAN.
TRADE PERFORMANCE WITH FTA PARTNERS
2008- 2011 (Value in RM Billion)
*For Japan, New Zealand and India, trade figures include both bilateral and regional FTAs with ASEAN.
COO UTILISATION OF THE FTA PARTNERS
2007- 2011 (Value in RM Million)
• MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY MALAYSIA
MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY. MALAYSIA
FTA – WHAT SHOULD YOU DO TO BENEFIT FROM FTA
• Check the HS Code of your products
• Check whether the products are included
under the tariff reduction/elimination
schedule of each FTA .You can check using
MITI’s website http://www.miti.gov.my
• Apply for product cost analysis (MITI) in
order to apply for Certificate of Origin. Cost
analysis form can be downloaded from
MITI’s website
• Apply for Certificate of Origin
• Enjoy the reduction/elimination of duty
THANK YOU
The FTA Agreements and
the Schedules of Tariff Concessions
are available on the following
website: www.miti.gov.my
Ministry of International Trade and Industry