KUALA LUMPUR (Dec 3): The United Kingdom will officially become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Dec 15, marking the first-ever free-trade agreement (FTA) between the UK and Malaysia.
This milestone was celebrated on Tuesday, with a countdown launch event led by Acting British High Commissioner to Malaysia, David Wallace, and Malaysia’s Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Aziz.
The FTA will eliminate 94% of tariffs between Malaysian and UK goods, including key sectors such as automotive, aerospace, and cocoa, according to a statement.
With the implementation of the CPTPP, the UK is expected to see increased exports of products such as chocolate and cars to Malaysia as well, and the FTA will further open the UK market for Malaysian commodities like palm oil, rubber, and timber.
Malaysian businesses also stand to benefit from duty-free exports, particularly in established sectors such as electrical and electronics, machinery, and parts.
In a press conference, Zafrul noted that this reduction in tariffs is expected to enhance trade, services, and investments between the two countries.
This new trade partnership offers both the UK and Malaysia a unique opportunity to expand market access, reduce trade barriers, and create fresh avenues for business and investment growth, he said.
Wallace noted the significance of the UK’s CPTPP membership, stating that the agreement will foster growth and prosperity for both nations by eliminating tariffs and streamlining trade processes.
This historic trade agreement signals a bright future for both nations, setting the stage for deeper economic cooperation and greater mutual growth, Wallace added.
With UK’s entry, the CPTPP now encompasses 12 nations across five continents, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.
UK’s presence in the CPTPP would raise the combined gross domestic product (GDP) of its members from over £9 trillion (RM50.87 trillion) to around £12 trillion, increasing their share of global GDP from 12% to 15%, according to the statement.