PETALING JAYA (July 11, 2013): The Malaysian ceramic industry has come out in support of the government’s initiatives to spur the growth of exports through the Trans-Pacific Partnership (TPP) free trade agreement, despite the dissatisfaction expressed by some quarters of the business community on the TPP talks.
The FMM Malaysian Ceramic Industry Group (MCIG) chaired by Raja Datuk Abd Aziz Raja Muda Musa, who is also Federation of Malaysian Manufacturers (FMM) vice-president, views Malaysia’s participation in the TPP as positive.
FMM MCIG said in a statement yesterday that the ratification of the TPP would be particularly beneficial should it give wider access into the US market, adopt rules of origin (ROO) to minimise abuse and facilitate and expedite dialogue on standards conformance between partners.
“The FMM MCIG would therefore urge the government to pursue the above items diligently during its negotiations on the TPP agreement,” it said.
Malaysian exports of ceramic products to the US totalled RM14 million last year. However, import duty on ceramic products in the US, for example, could be as high as 26% for ceramic tableware.
The TPP proposes to gradually reduce the tariff rate, which would allow Malaysian ceramic producers better access into the larger US market, in particular government procurement. Reduction of import duties under the TPP should, however, be consistent with the Asean-China FTA, that is, 5% by 2018.
The agreement also proposes to adopt ROO at the two digit level of Customs Tariff Heading. This is in line with the Malaysian ceramic products producers’ view that ROO at the two digit level would help to ensure a more level playing field and minimise abuse through illegal transshipment.
FMM MCIG also opined that a mutual recognition of standards and test results would further reduce costs for Malaysian manufacturers and exporters and enhance competitiveness.
The FMM Malaysian Ceramic Industry Group (MCIG) chaired by Raja Datuk Abd Aziz Raja Muda Musa, who is also Federation of Malaysian Manufacturers (FMM) vice-president, views Malaysia’s participation in the TPP as positive.
FMM MCIG said in a statement yesterday that the ratification of the TPP would be particularly beneficial should it give wider access into the US market, adopt rules of origin (ROO) to minimise abuse and facilitate and expedite dialogue on standards conformance between partners.
“The FMM MCIG would therefore urge the government to pursue the above items diligently during its negotiations on the TPP agreement,” it said.
Malaysian exports of ceramic products to the US totalled RM14 million last year. However, import duty on ceramic products in the US, for example, could be as high as 26% for ceramic tableware.
The TPP proposes to gradually reduce the tariff rate, which would allow Malaysian ceramic producers better access into the larger US market, in particular government procurement. Reduction of import duties under the TPP should, however, be consistent with the Asean-China FTA, that is, 5% by 2018.
The agreement also proposes to adopt ROO at the two digit level of Customs Tariff Heading. This is in line with the Malaysian ceramic products producers’ view that ROO at the two digit level would help to ensure a more level playing field and minimise abuse through illegal transshipment.
FMM MCIG also opined that a mutual recognition of standards and test results would further reduce costs for Malaysian manufacturers and exporters and enhance competitiveness.
No announcement for today.