M'sia to sign FTA with Iceland, Norway, Switzerland, Liechtenstein

Malaysia and the European Free Trade Association (EFTA) have concluded negotiations for a free trade agreement (FTA), said the Investment, Trade, and Industry Ministry (Miti).

The EFTA has four member states - Iceland, Liechtenstein, Norway, and Switzerland - with a commitment to promoting free trade and economic cooperation in Europe and globally.

In a statement today, Miti said the parties aim to sign the Malaysia-European Free Trade Association Economic Partnership Agreement (Meepa) in June.

The scope of the Meepa includes key areas such as trade in goods and services, investment, intellectual property rights, competition, government procurement, cooperation and capacity building, trade and sustainable development, as well as customs and trade facilitation.

Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz said, given the uncertainties surrounding the United States tariffs, Malaysia welcomed the certainties that FTAs such as Meepa provide.

“Such certainty will support local exporters while strengthening Malaysia’s long-term economic engagement with EFTA countries.

“We look forward to increasing trade with these countries, particularly in high-value goods and services,” Zafrul (above) added.

According to Miti, one of Malaysia’s key gains under Meepa was securing permanent preferential treatment for Malaysian exporters’ market access.

Currently, Malaysia enjoys reduced tariffs for exports under the EFTA States’ Generalised System of Preferences (GSP), a unilateral scheme that provides temporary tariff preferences.

However, this arrangement is subject to termination once Malaysia graduates from the GSP.

“With Meepa, this uncertainty is removed as Malaysia has achieved a permanent elimination of import duties in EFTA markets,” the ministry said.

Miti highlighted that another key feature was the potential partnership and knowledge transfers between Malaysia and EFTA states.

It added that EFTA was well-known for its research and development expertise and innovation in key areas such as renewable energy, science, technology, and high-precision industries.

“Through Meepa, Malaysia is well-positioned to tap into the EFTA states’ strengths via the Chapter on Cooperation and Capacity Building, which facilitates project-based collaborations through memorandums of understanding.

“This partnership promises to drive significant growth and create impactful opportunities for Malaysia’s development,” Miti said.

- Bernama

New US tariff impacts S'pore, can escalate into global trade war

COMMENT | What can M'sia and Asean offer to Trump

'M'sia cautious on US tariffs, ready to jump at geopolitical opportunities'

Countries should use WTO platform to resolve trade issues, problems: Anwar