ID :
180365
Fri, 05/06/2011 - 10:36
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Shortlink :
https://oananews.org//node/180365
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MALAYSIA, SOUTH KOREA TO CONDUCT SEPARATE STUDIES ON FEASIBILITY OF BILATERAL FTA
KUALA LUMPUR, May 6 (Bernama) -- Malaysia and South Korea have agreed to conduct separate studies to assess the feasibility of commencing free trade agreement (FTA) negotiations, says the Ministry of International Trade and Industry (MITI).
This is a follow-up to the decision by the leaders of both Malaysia
and South Korea to explore means to further enhance and strengthen bilateral trade and investment relations, it said in a statement Friday.
MITI said the objective of the study is to identify the implications of the establishment of an FTA between the two countries and assess the economic benefits and challenges that may arise.
Based upon the assessment, both countries should develop concrete policy recommendations for the possible initiation of negotiations for a bilateral FTA, it added.
The study will be conducted over 12-month period starting May 1.
MITI said within six months from the start of the study, the two countries will hold a meeting, to share information on the status of the respective studies as well as exchange intermediate outcomes.
South Korea has been a major trading partner for Malaysia and was the country's 13th largest trading partner in 2010. Its trade with Malaysia reached US$15.65 billion, an increase of 31.6 per cent from the same period of 2009.(US$1=RM3)
Malaysia's major exports to South Korea are mineral fuels, mineral oils, electrical machinery and equipment as well as machinery and mechanical appliances.
The country's main imports are electrical machinery and equipment, optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, parts and accessories and iron and steel.
South Korea continues to be one of Malaysia's main sources of foreign direct investment. To date, a total of 296 projects have been implemented at a total investment of US$2.7 billion.
Major areas of implemented projects are electronic and electrical products, non-metallic mineral products, petroleum products, basic metal products, fabricated metal products and chemicals and chemical products.
MITI said Malaysia, together with its Asean partners, has established an FTA with South Korea.
The Asean-Korea Framework Agreement on Comprehensive Economic Cooperation came into force on July 1, 2006. Effective January 1, last year, Malaysia and South Korea have eliminated import duties on 90 per cent of products.
This is a follow-up to the decision by the leaders of both Malaysia
and South Korea to explore means to further enhance and strengthen bilateral trade and investment relations, it said in a statement Friday.
MITI said the objective of the study is to identify the implications of the establishment of an FTA between the two countries and assess the economic benefits and challenges that may arise.
Based upon the assessment, both countries should develop concrete policy recommendations for the possible initiation of negotiations for a bilateral FTA, it added.
The study will be conducted over 12-month period starting May 1.
MITI said within six months from the start of the study, the two countries will hold a meeting, to share information on the status of the respective studies as well as exchange intermediate outcomes.
South Korea has been a major trading partner for Malaysia and was the country's 13th largest trading partner in 2010. Its trade with Malaysia reached US$15.65 billion, an increase of 31.6 per cent from the same period of 2009.(US$1=RM3)
Malaysia's major exports to South Korea are mineral fuels, mineral oils, electrical machinery and equipment as well as machinery and mechanical appliances.
The country's main imports are electrical machinery and equipment, optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, parts and accessories and iron and steel.
South Korea continues to be one of Malaysia's main sources of foreign direct investment. To date, a total of 296 projects have been implemented at a total investment of US$2.7 billion.
Major areas of implemented projects are electronic and electrical products, non-metallic mineral products, petroleum products, basic metal products, fabricated metal products and chemicals and chemical products.
MITI said Malaysia, together with its Asean partners, has established an FTA with South Korea.
The Asean-Korea Framework Agreement on Comprehensive Economic Cooperation came into force on July 1, 2006. Effective January 1, last year, Malaysia and South Korea have eliminated import duties on 90 per cent of products.
