Malaysian exporters to benefit from preferential tariffs UK will offer in CPTPP, says Zafrul
With the United Kingdom’s (UK) eventual accession into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Malaysian exporters will stand to benefit from additional preferential access into UK’s market, said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said upon implementation of the agreement, the UK will eliminate import duties for a wide range of products including palm oil, cocoa, rubber, electrical and electronics and chemicals, which are of significant export interest to Malaysia.
“The eventual accession of the UK into the CPTPP will open new opportunities for Malaysian businesses and small and medium enterprises (SMEs), particularly through wider sourcing channels for materials at competitive prices, as well as technical assistance and capacity building programmes, which would further stimulate Malaysia’s economic growth and strengthen regional supply chains.
“With Malaysia and UK’s historical trading and investment ties, membership into the CPTPP will further enhance this close relationship and foster greater economic cooperation,” he said in a statement on 1st April.
On 31st March, the UK concluded trade talks with member countries to join the CPTPP after 21 months of negotiations.
Under the announcement by the CPTPP and the UK ministers on the substantial conclusion of the UK’s accession negotiations into the CPTPP, all parties will work towards finalising the legal accession instrument, including the signing of the accession protocol scheduled in the third quarter of 2023.
The CPTPP is one of the most comprehensive trade deals ever concluded, eliminating 98% of tariffs in a trade zone representing a combined GDP of US$13.5 trillion, representing 13.4% of global gross domestic product (GDP) and a population of over 500 million people.