WTO Members may impose measures for the protection of human, animal, plant life or health reasons, under the Agreement on Sanitary and Phyto-Sanitary Measures (SPS). The measures imposed should conform to international standards and guidelines, in order to ensure harmonisation in implementation. The measures should not restrict the flow of trade, implemented in a non-discriminatory manner and should be applicable to all countries and domestic producers or suppliers. Despite these guidelines, disputes have been referred to the WTO on SPS measures. For example, the ban imposed by the US on importation of poultry products from China is viewed as discriminatory protectionism by China as it violates the obligations under the General Agreement on Tariffs and Trade (GATT) 1994 and the SPS Agreement. The US however insists that the SPS measures taken by them are to ensure food safety and is based on scientific evidence as required under the SPS Agreement and therefore is in compliance...

Chile underwent its Fourth Trade Policy Review (TPR) on 7 and 9 October 2009. The last review was in 2003. The TPR is part of the transparency process in the WTO to evaluate trade policies and practices of Members. The Chilean economy grew at an annual average rate of 4.8% between 2003 and 2008 due to strong domestic demand and export growth. Despite the international crisis, Chile’s per capita GDP reached US$10,087 in 2008 (2003: US$4,746), one of the highest in Latin America. Chile maintains an open, transparent and predictable trade regime. Chile’s average applied MFN tariff is 6% while its entire tariff schedule is bound at an average of 25%, except for some agricultural products which are bound at 31.5%. Chile has a price-band system* for imports of wheat, flour sugar and vegetable oil. In response to questions raised on its price-band system, Chile indicated that it is considering replacing the system with fixed specific tariff. In 2008, Chile’s merchandise exports...

Many Governments today are faced with a million dollar question – to liberalise or not. It is good for us to understand that the vast choices and competitive prices we pay for goods & products today are culmination of liberalisation through multilateral trade negotiations since 1947 under the auspices of the General Agreement on Tariffs and Trade (GATT) – now known as the World Trade Organisation (WTO). It must be noted that the WTO opened up markets and created rules to faciliate orderly conduct of global trade and prevented trade wars as well as global resources wastage. Read more to understand WTO’s role and its contribution.

 

FTAs create a conducive environment for investments by providing protection to investment and enhancing Malaysia’s standing as an attractive investment destination. This will strengthen investor confidence and translate into potential employment opportunities and provide more choices at competitive prices for the consumer. Contrary to arguments put forth by some critics, FTAs prompt local companies to work harder and become more efficient to stay competitive. The concessions accorded under FTAs are normally granted in stages over a period of time; long enough for the domestic producers to adapt their production processes to meet the increased competition in the domestic market. Learn more about FTAs by reading “FTAs – Creating An Environment For Fair Trade ”. Also featured is the Malaysia-New Zealand FTA which helped increase the confidence of a New Zealand based company to invest in Malaysia and how the Malaysia-Japan Comprehensive Economic Partnership Agreement...

Highlights of the MITI Weekly Bulletin, Vol. 110 include: Global Competitiveness Report 2010-2011 The Global Competitiveness Report (GCR) 2010-2011 by the World Economic Forum (WEF) based in Geneva, Switzerland covers 139 countries (GCR 2009-2010: 133 countries). GCR uses 30% statistical data (32 criteria) and 70% survey data (79 criteria) from its Executive Opinion Survey. Malaysia is ranked at the 26th position. Micro-Financing for SMEs Micro-finance is a proven tool for fighting poverty on a large scale. It provides small loans, also known as micro-loans, to start or expand small and self-sufficient businesses. Unlike commercial loans, no collateral is required for a micro-loan which is usually repaid within six months to a year. Micro-financing is an important mechanism for micro enterprises to achieve economic balance. The Malaysian Standard on Globally Harmonised System (GHS) for Classification and Labelling of Chemicals (MS 1804:2008) The Malaysian Standard on GHS...

ON Aug 22, Russia became the 156th member of the World Trade Organisation (WTO) after almost two decades of negotiations. Russia is now a member of the WTO. So what? To answer this question we have to rewind to 1995. In that year, 128 countries, including Malaysia, who were members of the General Agreement on Tariffs and Trade (GATT), signed the Marrakesh Agreement to form the WTO. They did this in the spirit of ensuring global economic growth through a liberalised, transparent and predictable global trading environment. Towards that end, the member countries agreed to work on ground rules for international commerce. The WTO was to focus on getting members to reduce and eliminate import duties and subsidies in an attempt to create a level playing field for international trade. These ground rules were framed in agreements. In sum, governments must ensure that their trade...

Vladivostok, 5 September 2012- The Minister  of International Trade and Industry of Malaysia, Dato’ Sri Mustapa Mohamad, highlighted the importance of freer in ensuring food security and  reiterated Malaysia’s commitment to the Asia Pacific Economic Cooperation (APEC) initiative to promote green growth and sustainable development. On food security, the APEC Ministers highlighted the need to ensure trade in agricultural products and food is facilitated through appropriate policy responses. They wanted to see greater collaboration to ensure  food security, including in intensified agricultural research, and sharing of best practices through the APEC Platform. In his intervention during the meeting, Dato’ Sri Mustapa stressed, “Agriculture and food security are high on the Malaysian agenda. Malaysia views that food production and trade in agricultural products can be further enhanced through the dismantling of market distorting measures in global agriculture trade.”...

With the signing of the Protocol of Accession on 26 October 2012, the WTO General Council has officially agreed to Laos joining the organization, paving the way for the last member of our ASEAN family to become a member of the WTO by early 2013. On behalf of the people of Malaysia, I would like to congratulate Laos for concluding the final step in a long and challenging journey towards WTO membership.  Laos began this process in 1997. Laos has undertaken domestic regulatory reform to conform with the WTO rules. It has also undergone a massive transformation in the way of doing business. It is understood that in the last 15 years, 90 laws and regulations were enacted across the board; tariffs  bound at an average of 18.8% for all products; and market access commitments in 10 service sectors, covering 79 sub-sectors. These achievements are indeed commendable for this land-locked country with 6.5 million people. It is also heartening to note that these efforts were in parallel with...

 

YAB Prime Minister, Dato’ Sri Mohd Najib Tun Razak, will be leading the Malaysian delegation to the World Economic Forum (WEF) in Davos, Switzerland, from 23 to 26 January 2013. With the congregation of over 2,500 of the world’s most powerful and influential investors, business leaders and policy makers at Davos, Malaysia is using  its  participation in the World Economic Forum, 2013 to build a strong case for itself as a preferred investment, trade, education and tourism destination in Asia. In light of the growing competitive environment Malaysia need to raise its profile by highlighting the success of the economic transformation programme in the country. The World Economic Forum is one of the most important and high-profile annual business gatherings in the world. The theme for this year’s Forum is ‘Resilient Dynamism’ and global leaders will be discussing how, in an increasingly interconnected world, nations and businesses can build risk resilience and adapt...