Malaysia-Turkey Free Trade Agreement (MTFTA)
The Malaysia-Turkey Free Trade Agreement (FTA) was signed on April 17, 2015 and scheduled for implementation on the third quarter of 2015. The Malaysia -Turkey Free Trade Agreements provides an effective platform for companies to create business opportunities in Turkey. Malaysian SMEs now have a better access to a market with a population of 80 million with implementation of Malaysia -Turkey FTAs effective from 1 August 2015. The FTAs would see the elimination of duties for 70% of the goods, including selected tropical fruits and fisheries products, automotive parts, textile, rubber and chemical -based products, electrical and electronic products and others.
As such, with the signing and subsequent entry into force of MTFTA, Malaysian exporters can continue to gain preferential market access into and also remain competitive in the Turkish market.
Highlights of the Agreement that industries should be aware of are as follows:
- Malaysia and Turkey will progressively reduce or eliminate tariffs on a substantial number of products traded between both countries with expected duty free imports by 2022. The elimination of duties by Turkey through MTFTA will compensate for the withdrawal of the GSP benefits offered by Turkey until December 31, 2013.
- Malaysian exports to Turkey that will benefit from immediate elimination of duties include: palmoil products, electrical and electronic products, chemicals, textiles, machinery, plastic, rubber products, wood and wood products, selected automotive parts, aircrafts, space crafts, ships and boats, mineral and ores and glass, glassware and ceramic products.
- Malaysian importers may enjoy the benefit from immediate elimination of duties for the following products from Turkey: sugar and sugar confectionery, products of meat, fish or crustaceans, leather and its products, railway or tramway locomotives, rolling stock and parts, apparels, footwear and headgears, aircrafts, space crafts, ships and boats, selected machineries and equipment, iron and steel and its products, textiles and electrical and electronic products.
The main text of the Agreement can be viewed via MTFTA Agreement