Miti Blog

Ministry of International Trade and Industry Malaysia Official Blog

Another Milestone in FTAs

Posted by admin2 on July 2, 2015 at 12:21 pm
The ASEAN-India Free Trade Agreement (AIFTA) came into effect on 1 January 2010 for Malaysia and India. It is a remarkable milestone towards a freer market environment, and an important agreement for Malaysia as India is emerging as an important trading partner as well as a market for Malaysian exports. This FTA creates a market of 1.7 billion people with combined GDP of US$2.8 trillion and combined global trade of over US$2 trillion. Under the AIFTA, ASEAN Member States and India have agreed to progressively reduce and eliminate duties on substantial number of products over a period of 3-8 years beginning 1 January 2010. The Philippines, Cambodia, Lao PDR, Myanmar and Viet Nam are given an additional 2-3 years to reduce and eliminate their duties under this FTA.

Dato’ Sri Mustapa Mohamed says that Malaysia is committed to eliminate import duties on 6,792 products or tariff lines by 31December 2013, while duties on another 1,266 tariff lines would be eliminated by 31 December 2016. The import duties on 1,336 tariff lines which are considered to be products where domestic industries require some level of protection will be reduced to 5 per cent by 31 December 2016. The gradual reduction and elimination of duties are also to allow domestic industries sufficient time to adjust to increased competition.

On her part, India will undertake to eliminate import duties on 7,767 tariff lines or products by 31 December 2013 and 1,260 tariff lines by 31 December 2016. The import duties on 1,810 tariff lines will be reduced to 5 per cent by 31 December 2016.

Overall, by end of 2013, 71 percent of products exported to India will be able to enter the market duty free and another 10 per cent of products by 2016. In addition, duties on another 10 per cent of products will be reduced to 5 per cent.

This import duty elimination and reduction over the next 3-6 years will open market for Malaysian exports to India.

Malaysia excluded 898 tariff lines from tariff concessions. The products excluded are selected poultry products, tropical fruits and rice, iron and steel, automotive products, chemicals, alcoholic beverages; tobacco and tobacco products, and used tyres. These products are excluded based on intensive consultation that was held with the domestic industries which need longer time frame to enhance to their competitiveness vis-a vis India.

The products excluded from concessions by India are mainly agricultural products, textiles, iron and steel, automotive and ceramic tiles and this involves a total of 1,298 tariff lines. These products, however, are not excluded on a permanent basis but are subject to future review as provided for under the ASEAN-India Free Trade Agreement.

Economic factors indicate that India is a market with huge potential. Despite the global economic setback, India continues to register impressive economic growth. The growth in 2009 is expected at 6.9 per cent. It is forecasted to grow between 7-9 per cent in 2010 and 2011. The country continues to be fuelled by private sector driven economic growth. There is a rising middle class population estimated at 300 million. Today, India is the 12th largest economy in the world by nominal value and the fourth largest by purchasing power parity (PPP). Economists predict that by 2020, India will be among the leading economies of the world. India’s global trade is expanding rapidly.

Based on WTO report, India’s foreign trade totaled US$470.9 billion (Imports: US$293.4 billion and Exports: US$177.5 billion) and accounts for 1.5% of World trade in 2008.

These are positive factors that have to be taken into account by Malaysia. India has traditionally maintained high tariffs and over 80 per cent of the products imported into India attract duties ranging from 15-100 per cent. Malaysia and the other ASEAN Member States stand to gain from the FTA as the ASEAN can now export to India at preferential tariffs compared to India’s other major trading partners. ASEAN has a first mover advantage. Within the ASEAN countries, Malaysia was the 4th largest export destination and 2nd largest source of imports in the year 2008 for India.

Malaysia’s trade with India has been expanding in recent years even without the FTA as India embraces globalization and competition. Bilateral trade registered RM35 billion in 2008. Malaysia’s exports to India totaled RM24.7 billion. Major export products to India were crude petroleum, electric and electronic products, chemicals and chemical products, palm oil and sawn timber. On the other hand, Malaysia mainly imports manufactures of metal, cereal (maize), chemicals and chemical products, refined petroleum product and live animal and meat. There are opportunities with duty reduction and elimination to expand and diversify the range of products traded between Malaysia and India.

“There are ample opportunities for Malaysian and India businessmen to work together to form strategic partnership”, says Dato’ Sri Mustapa Mohamed. “R&D is an area where Malaysian companies could forge linkages to enhance their product strength, not only for the Indian market, but also the global market” he added. Other sectors where Malaysia and India can form strategic partnership are in ICT, pharmaceutical, healthcare, auto parts, machinery and equipment, rubber and palm oil based products. Many Malaysian companies are already actively involved in activities in India such as building of roads, rails, ports, airports and running of other services facilities. The FTA offers the opportunities for Malaysian companies to source their requirements for their projects in India from Malaysia.

YB Dato’ Sri Mustapa Mohamed will accompany YAB Prime Minister in his maiden visit to India on 19 January 2010, and the visit will give a further boost to the bilateral trade relations between Malaysia and India.

 

7 comments for this post

Posted on May 7, 2019 at 4:34 am
 
I like EDM bands! I really do! And my favourite dance band is Chainsmokers! DJs Alex Pall and Andrew Taggart are about to perform more than 50 concerts to their fans in 2019 and 2020! To know more about The Chainsmokers in 2019 visit site [url=https://chainsmokersconcerts.com]Chainsmokers tour Cincinatti[/url]. You aren't going to miss any concert in 2020 if you click on the link!

Posted on May 5, 2019 at 3:26 am
 
Carrie Underwood is my favourite country singer. She is young, beautiful and charming woman in her 30s. Her voice takes me away from all troubles of this world and I start enjoy my life and listen songs created by her. Now the singer is on a Cry Pretty 360 Tour started in May of 2019. The concerts scheduled for the whole 2019, up to the 31st of October. Ticket prices are moderate and available for all men and women with different income. If you love contry music, then you must visit at least one of her concert. All tour dates are available at the [url=https://carrieunderwoodconcerts.com]Carrie Underwood tour Boston[/url]. Open the website and make yourself familiar with all Carrie Underwood concerts in 2019!

Posted on May 3, 2019 at 1:22 am
 
I like soul bands! I really do! And my favourite blues band is Johnnyswim! The members Amanda Sudano and Abner Ramirez are about to give more than 40 concerts to their fans in 2019 and 2020! To know more about Johnnyswim in 2019 visit site [url=https://johnnyswimtour.com]johnnyswimtour.com[/url]. You won't miss any performance by Johnnyswim in 2020 if you click on the link!

Posted on March 25, 2019 at 6:52 am
 
I like rock songs! I really do! And my favourite yadrock band is Hootie and The Blowfish! All band members has re-united to perform more than 50 concerts to their fans in 2019! To know more about Hootie & Blowfish in 2019 visit website [url=https://hootietheblowfishtour.com]Hootie and the Blowfish tour Montreal[/url]. You won't miss concerts this year if you click on the link!

Posted on March 6, 2019 at 10:30 pm
 
Carrie Underwood is my favourite country singer. She is young, beautiful and charming female in her 30s. Her voice takes me away from all issues of this planet and I start enjoy my life and listen songs created by her. Now she is on a Cry Pretty 360 Tour started in May of 2019. The concerts scheduled for this year, up to the last day of October. Ticket prices are moderate and available for all men and women with different income. If you are a country music lover as me, then you must visit at least one of her concert. All tour dates are available at the [url=https://carrieunderwoodtour.com]Carrie Underwood tour Bakersfield[/url]. Visit the website and make yourself familiar with all Carrie Underwood concerts in 2019!

Posted on March 2, 2019 at 11:47 am
 
New Kids on the Block is my favourite band of 90s. NKOTB had so many hit songs! The ones I remember are 'Tonight', 'Baby, I Believe In You' and their hit 'Step By Step'. These are real masterpieces, not garbage like today! And it is sooo good NKOTB have a tour in 2019! So I'm going to visit their concert in 2019. The concert dates is here: [url=https://newkidsontheblocktour2019.com]New Kids on the Block tour Salt Lake City[/url]. Open the page and maybe we can even visit one of the concerts together!

Posted on February 26, 2019 at 5:34 am
 
Backstreet Boys BSB are an American rock band. The band was founded on April 20, 1993 in Orlando, Florida, by Lou Pearlman. Now this is the most successful boy band with more than 100 million records sold all around the world. The band was named after a flea market in Orlando, the "backstreet flea market". In 2019 BB has more than 50 concerts in the US with their DNA World Tour. Check concerts at [url=https://backstreetboystourdates.com]Backstreet Boys tour Orlando[/url] site. Full list of tour dates & concerts!

Type Your Search Here

A PHP Error was encountered

Severity: Notice

Message: Undefined index: announce_display_type

Filename: libraries/Announcements_plugin.php

Line Number: 588

A PHP Error was encountered

Severity: Notice

Message: Undefined index: announce_display_type

Filename: libraries/Announcements_plugin.php

Line Number: 590

A PHP Error was encountered

Severity: Notice

Message: Undefined index: announce_display_type

Filename: libraries/Announcements_plugin.php

Line Number: 588

A PHP Error was encountered

Severity: Notice

Message: Undefined index: announce_display_type

Filename: libraries/Announcements_plugin.php

Line Number: 590

A PHP Error was encountered

Severity: Notice

Message: Undefined index: announce_display_type

Filename: libraries/Announcements_plugin.php

Line Number: 588

A PHP Error was encountered

Severity: Notice

Message: Undefined index: announce_display_type

Filename: libraries/Announcements_plugin.php

Line Number: 590

Tags

4PU ACEAN AEC AFAS AFTA AKI APEC ARBC ASEAN ASEAN Business Advisory Council (ABAC) ASEAN Regional Business Council ASEAN- India FTA ASEAN-India FTA AirAsia Alternative medicine Andrew Robb Anti- Dumping Anugerah Kecemerlangan Industri Apollo Hospitals Apparels Apps Store Asean Economic Community Asean Framework Agreement on Services Asian Development Bank Australian Minister for Trade and Investment Automotive Industry Axiata BDO BNM Babar Ali Khan Bangladesh Bank of China Bogor Goal Brazil Budgets Bumiputera CEO CEPT CHINA CIDB CIMB COO Caexpo Cement and Concrete Association (C&CA) Channel News Asia Chemical Company of Malaysian Berhad (CCM) Chile China China-ASEAN China-ASEAN FTA Confederation of Indian Industry Conference Construction Industry Development Board Consumers DIGI DOHA Dato' Seri Mustapha Mohamed Datuk Dr Rebecca Sta Maria Datuk Hamim Samuri Datuk Ir Hamim Samuri Datuk Jacob Datuk Mustapa Mohamed Datuk Naimun Ashakali Mohammad Datuk Seri Mustapa Mohamed Datuk Seri Mustapha Mohamed Datuk Seri Najib tun Razak Doha Development Agenda ELV Policy EPU ETP Economic Planning Unit Economic Policy Leaders programme Economic Transformation Program Economic Transformation Programme Economy Eelco Eksport Eksports Eports European Commission (EC) Events Export Exports FDI FOKEM FTA Federal Governmen Federation of Malaya Fiscal policy Committee (FPC) Food Forbes Foreign direct investments Foreign investments Forum Ekonomi Dunia GDP GE GST GTP Global Market Globecycle Goods and Services Tax Government Transformation Programme Groom Big HACCP-certified HDC HP Halal Halal Development Industry Halal Development Industry Corporation Halal Industry Development Corp Halal Ingredients Asia 2015 Hoekstra ICT IJM Corp Berhad IMD INSKEN INVESTMENT MISSION IPI IT Import Imports India Indian Commerce and Industry minister Nirmala Sitharaman Industries Industry Information and Communication Technology (ICT) Infrastructure Development Finance Company Institute for Management Development International Trade and Industry InvestKL Investents Investment Investments Jabatan Kemajuan Islam Malaysia Jakim Jeli Jepun Jom Masuk IPT (KPTN 2015) KELANTAN KSU Karnival Karnival Pendidikan Tinggi Negara Khazanah Nasional Khazanah Nasional Bhd Kulim Hi-Tech Park LIMA LIMA'15 LNG Laporan World Competitiveness Yearbook (WYC) Lawatan Lembaga Pembangunan Industri Malaysia Lexus MAI MATRADE MAlaysian Economy MGCC MIDA MITC MITI MITI Deputy Secretary-General MITI Report MITI Weekly Bulletin MITI Weekly Bulletin trade MITI report MITI weekly Bulletin MITI] MNC MOF MPC MTFTA Malaysia Malaysia Airports Holdings Berhad Malaysia Automotive Institute Malaysia Economy Malaysia Entrepreneurship Forum 2015 (MEF) Malaysia External Trade Development Corp Malaysia External Trade Development Corporation Malaysia International Halal Showcase Malaysia-China Trade Malaysia-India Comprehensive Economic Cooperation Agreement Malaysian Airlines Bhd Malaysian Economy Malaysian Industrial Development Finance Bhd Malaysian Palm Oil Board Malaysian Report Malaysian Standards Malaysian economy Malaysian pavilion Manufacturing Manufacturing Industry Maybank Media Release Menteri Perdagangan Antarabangsa dan Industri Microsoft Mid Tier Companies Development Programme Minister of Commerce of China Gao yan Minister of International Trade and Industry Ministry of Finance Ministry of International Trade and Industry Miti Miti Report Miti Weekly Bulletin MyASEAN Internship Programme NAP NAP review National Automotive Policy Nestle Networking OIC OIC-Asia Trade and Economic Forum 2015 Organisation of Islamic Cooperation P Ravindran PEMANDU PEMUDAH PKS PLKN PPD Pameran Maritime dan Aeroangkasa Antarabangsa Langkawi 2015 Parts and Components Pembangunan Industri Halal Sdn Bhd Pengurusan Prestasi dan Pelaksanaan (PEMANDU) Perbadanan Perbadanan Pembangunan Industri Halal Sdn Bhd Perbadanan Pembangunan Perdagangan Luar Malaysia Performance Management and Delivery Unit Perjanjian Perdagangan Bebas Perusahaan Kecil dan Sederhana Petronas Play Store Policy Perspective Preferential Tariff Rate Program Pembiayaan Usahawan Wanita Program Transformasi Ekonomi Pusat Dagangan Antarabangsa Melaka Pusat Transformaasi Luar Bandar (RTC) Quality R&D RCEP ROO Ranhill Regional Comprehensive Economic Partnership Road Sectors Royal Vopak Russia SCE SDSI SIRIM SIRIM QAS International Sdn Bhd SME Bank SME CORP SME Corp SME corp Malaysia SMECorp SMEs SPS STA Sadguru Polymers Pvt Ltd & Triace Solution SapuraCreest Satu Daerah Satu Industri Securities Commision Service Industry Service Sector Service Sectors Service sector Service sectors Services Sector Services sector Shell Shell Malaysia Shell Malaysia Ltd(SML) Shell Refining Company Showcase Groom Big Sime Darby Singapore Corp Enterprise Small and Medium Scale Industries Sri Mustapa Mohamed Strategic Trade Bill Success Story Sunway Sunway Group THE 12th China-Asean Expo TM TOK BALI TPP TPP trade TPPA TTPA TV Show Tariff Elimination Temasek Foundation Tenaga Nasional Bhd's The 21th ASEAN Economic Ministers (AEM) The Economic Planning Unit (EPU) The Malaysian Investment Development Authority The New Global Context The World Trade Organisation (WTO Toyota Camry Trade Trade Figure Trade Performance Trade Review Trans Pacific Partnership Trans Pacific Partnerships Trans-Pacific Partnership Agreement UMW Corporation UMW Holdings Berhad UMW Toyota UNCTAD US Universiti Malaysia Kelantan (UMK) Untag Usahawan Bumiputera Vehicle End-of-Life Policy Voluntary Partnership Agreement (VPA) WCC WCY WEF WEP WHS WORLD ECONOMIC FORUM(WEF) EAST ASIA 2014 AND TRADE & INVEST WTO World Competitive Centre World Competitiveness Center (WCC) World Competitiveness Yearbook (WCY) World Economic Forum World Halal Conference 2015 World Halal Summit YB Dato' Sri Mustapa Mohamed ZICOlaw application auto automotive bangladesh bank negara malaysia bilateral relation biojisim biomass business business facilitataion business facilitation cars 15 years cement industry competitiiveness competitive competitiveness competitveness currency e&e economy education electrical electronics emerging market environment eport World Competitiveness Yearbook 2014 export exports felda food manufacturing fore foreign direct investments foreign trade forex free trade agreement green technology gross domestic product healthcare highway hong kong import imports india industries industry interest rates international standards investmen investment investments irAsia iron and steel japan jepun kdnk kelantan liberalisation logistic low carbon malaysia malaysian business manila manufacturing mecc metal sub-sector middle east mihas miti motor vehicles national green technology national timber policy non-Islamic nations non-tariff north africa packaging policy review portland cement proton public service delivery renminbi research and development retails road transport sales showcase small and medium enterprises small and medium enterprises (SMEs) sme sme corp sme corp malaysia sme master plan smi smidec syarikat berstatus multinasional tariff tax incentive textiles the Asociation of Southeast Asian Nations the electrical and electronics the government's 11th Malaysian Plan tnb tourism trade tradisional medicine tube programme usahaw value added visit wood wood-based products world economic forums