PETALING JAYA: Malaysia and the European Free Trade Association (Efta) have successfully concluded negotiations for a free trade agreement (FTA), says Tengku Datuk Seri Zafrul Aziz.
Efta comprises Iceland, Liechtenstein, Norway and Switzerland.
The Investment, Trade and Industry Minister said this marks a significant milestone in Malaysia's international trade agenda.
Zafrul said the agreement, formally known as the Malaysia-European Free Trade Association Economic Partnership Agreement (Meepa), was finalised on April 11. The signing of the FTA is scheduled for June this year.
He said Meepa encompasses a comprehensive scope, covering 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.
"One of the nation's key gains under Meepa is 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," he said in a statement on Friday (April 11).
Tengku Zafrul also highlighted the importance of the agreement, especially in the current global trade climate.
"Given current uncertainties surrounding US tariffs, Malaysia welcomes the certainties that FTAs such as Meepa provide.
"Such certainty will certainly support local exporters, while strengthening Malaysia's long-term economic engagement with the Efta countries.
"We look forward to increasing trade with these countries, particularly in high-value goods and services," he said.
According to him, Malaysia's total bilateral trade with the Efta states reached RM14.4bil in 2024.
Key exports included electrical and electronic (E&E) products, machinery, equipment and parts, optical and scientific instruments, chemicals and rubber products.
Imports from the Efta states comprised mainly chemicals and chemical products, followed by machinery, E&E, scientific instruments and metals, the statement added.
He also highlighted the significance of collaboration opportunities arising from the agreement.
"Efta member states are globally recognised for their strength in research and development, particularly in renewable energy, science, technology and high-precision industries.
"Through Meepa's chapter on Cooperation and Capacity Building, Malaysia is poised to benefit from knowledge transfers and project-based partnerships via memorandums of understanding.
"This partnership promises to drive significant growth and create impactful opportunities for Malaysia's development," he said.
