Malaysia expects quicker FTA ratification by Turkey
Jun 02, 2014 - 12:00 am GMT+3
Jun 02, 2014 12:00 am
KUALA LUMPUR — Malaysia is seeking Turkey's cooperation in hurrying up the ratification of a recently inked free trade pact between the two moderate Muslim-economies.
The process is to be tabled in the Turkish parliament this month, as it requires parliamentary approval, says Malaysia's Ministry of International Trade and Industry.
"Our counter-parts in Turkey are very helpful and also keen to implement the trade pact too," the ministry's secretary-general, Rebecca Fatima Sta Maria, told the Anadolu Agency in Kuala Lumpur on Monday.
She said that expediting the process would fast forward the implementation of the pact, which stands to reduce tariff lines for exports from both countries, and was inked April 18 during Malaysian Prime Minister Najib Razak's then official working visit to Ankara.
Malaysia's bilateral trade with Turkey has increased 86 percent over the past five years, reaching US$1.1 billion in 2013, however during Prime Minister Recep Tayyip Erdogan's visit to Malaysia in January, it was agreed to raise targets to US$5 billion by 2018.
On the pact being ratified, Malaysian exports to benefit from immediate duty-free treatment include electrical and electronic products, rubber products, chemicals, selected iron and steel products, machineries, wood products and leather products.
The average annual export value of these goods is US$250 million (RM809 million).
Turkish exports to Malaysia that will benefit include agricultural produce, fisheries, food products and mineral products.
For palm oil and palm products, Turkey has offered a one-off duty reduction of 30 percent from the current most favored nation rate. Reduction of duties on these products essentially mean that Malaysian palm oil and palm products are placed at a competitive advantage in the Turkish market, over similar products originating from other countries.