Home » Expect Marked Increase In Trade Between Malaysia-Chile With FTA

Expect Marked Increase In Trade Between Malaysia-Chile With FTA

News From : DagangHalal.com (14 Nov 2011)

KUALA LUMPUR – A marked increase in trade between Malaysia and Chile is expected when the Malaysia-Chile Free Trade Agreement (MCFTA) comes into force in early 2012, said Deputy Minister of International Trade and Industry, Datuk Mukhriz Mahathir here Thursday.

“Each time an FTA comes into effect, we normally see a marked increase in trade between the two parties and I am hoping the same will occur between Malaysia and Chile,” he told reporters at the Commercial and Investment Opportunities Seminar in conjunction with the Flavours of Chile programme, here.

Mukhriz sees an increase in Malaysia’s export of electrical and electronic (E&E) products and components to Chile which is currently very small.

“Our export of E&E products and components to Chile at present is very small. So, the potential must be enormous,” he said.

He also said that Malaysians should explore opportunities in oil and gas as well as palm oil.

“I think oil and gas and palm oil are the sectors. I hear from the Chileans that their use of palm oil is increasing. So, I think, that should be a natural area for us to explore,” he added.

Mukhriz said Chile is also keen to export its halal products to Malaysia.

“The Department of Islamic Development Malaysia or JAKIM has been to Chile to review and basically certify that the Muslim authority in the country has abided by the same conditional standards that we practice here.

“Since they have participated in the International Halal Showcase (MIHAS), more and more of the country’s food products will be coming here,” he added.

He said that Malaysia’s trade with Chile has been on an uptrend since 2002, with the trade value increasing from US$75.23 million in 2002 to US$313.23 million in 2010.

In the first nine months of this year, it increased by a further 10 per cent.

Last year, Malaysia’s exports to Chile amounted to US$83.27 million while imports totalled US$229.96 million.

As trade has been in Chile’s favour since 2003, Mukhriz said Malaysia is trying to increase the range of products that are currently being exported to the country.

He said upon implementation of the MCFTA, Malaysia and Chile would eliminate import duties on nearly 90 per cent of tariff lines.

“With the relatively duty-free regime under the FTA, this agreement will not only boost bilateral trade between our two countries but also serve as a vehicle for Malaysia’s expansion into the Latin American market,” he added.

He said with the Malaysian and Chilean markets being relatively small, companies from both countries can form joint-ventures and use Malaysia as their operational or manufacturing base.

“This is to benefit from the various free trade agreements Malaysia has concluded with its trading partners,” he added.

Malaysia has signed bilateral FTAs with Japan, Pakistan, New Zealand and India. ASEAN has also signed regional FTAs with China, Korea, India, Australia and New Zealand.

Source: BERNAMA

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