MALAYSIA-EUROPEAN UNION FREE TRADE AGREEMENT (MEUFTA)

Background

  • On 27 February 2010, Cabinet agreed for Malaysia to pursue FTAs with several identified countries/regions including the EU. Malaysia and EU commenced the first round of negotiations on 6 Dec 2010 in Brussels, Belgium.

Scope

  • A total of 13 Working Groups have been established to negotiate on the following issues:

    1. Market Access for Goods

    2. Services and Investment

    3. Customs and Trade Facilitation

    4. Rules of Origin (ROO)

    5. Trade Remedies

    6. Sanitary and Phyto-Sanitary (SPS) Measures

    7. Technical Barriers to Trade (TBT)

    8. Competition Policy

    9. Intellectual Property Rights (IPR), including Geographical Indications (GI)

    10. Government Procurement (GP)

    11. Sustainable Development Issues (i.e., Labour and Environment)

    12. Dispute Settlement Mechanism

    13. Transparency/ Institutional Issues

  • Both sides are also negotiating in parallel an Agreement on Partnership and Cooperation (PCA).

Status

  • As of April 2012, seven rounds of negotiations have been held with inter-sessional meeting held from 25-29 September 2012 for 4 working groups, namely rules of origin, trade in services, green technology and trade remedies.

  • Negotiations across all areas, which are now text-based, have made reasonable progress.


Benefits

  • The EU is a significant market for Malaysia as it provides a viable access to penetrate into the strategic market of Euro zone. The EU is also an important source of foreign direct investment and transfer of knowledge and technology.

  • In 2011, total trade between Malaysia and the EU amounted to RM132 billion, recording an increase by 7.4 per cent with exports valued at RM72 billion (an increase by 4.7 per cent) and imports accounted for RM60 billion (an 11.0 per cent increase). The total trade was in Malaysia's favour.

  • In 2011,

    • The EU was Malaysia's:

      • 4th largest trading partner;

      • 4th largest export destination; and

      • 4th largest source of imports.

    • Malaysia was the EU's:

      • 23rd largest trading partner;

      • 27th largest export destination; and

      • 17th largest source of imports.

    • Among ASEAN countries , Malaysia was the EU's:

      • 2nd largest trading partner, after Singapore;

      • 2nd largest export destination, after Singapore; and

      • The largest source of imports.

  • Major exports to the EU in 2011 include electrical and electronic products, palm oil, chemicals and chemical products, rubber products as well as optical and scientific equipment.

  • Major imports from the EU in 2011 include electrical and electronic products, machinery, appliances and parts, chemicals and chemical products, transport equipment as well as iron and steel products.

  • From January to June 2011, Malaysia's total trade with the EU amounting to RM 63.66 billion with exports valued at RM35.16 billion and imports at RM28.5 billion.

Contact Person

  • Any enquiry on MEUFTA can be directed to:

Ms. Arividya Arimuthu
Minister Counsellor (Economic Affairs) and Coordinator for the Malaysia-EU FTA
Mission of Malaysia to the EU
Brussels, Belgium
Email: arividya@miti.gov.my