PAKISTAN ELIMINATES IMPORT DUTIES ON OVER 1,600 M'SIAN PRODUCTS

KUALA LUMPUR, Jan 28 (Bernama) -- The Ministry of International Trade and Industry (MITI) announced Wednesday that Pakistan had eliminated import duties on over 1,600 Malaysian products as of January this year.

The duty elimination is part of the Malaysia-Pakistan Closer Economic
Partnership Agreement (MPCEPA), said the Ministry in a statement here.

Among Malaysian exports to Pakistan that will benefit from the duty
elimination are parts and accessories for machinery, digital processing units,
natural rubber, sawn wood, industrial chemical products, fruits and nuts,
insecticides as well as butter, other fats and oil, said MITI.

MITI has also urged the Malaysian business community to take advantage of
the duty eliminations, as the potential to supply the Pakistan market was
considerable.

"These duty eliminations will give Malaysian exporters to Pakistan an edge
over their competitors, who still have to pay duties ranging from five to 35
percent," it said.

The MPCEPA was signed on Nov 8, 2007 between Malaysia and Pakistan and came
into force on Jan 1 last year.

Under the MPCEPA, both Malaysia and Pakistan, will progressively reduce and
eliminate tariffs on most agricultural and industrial products by 2014.

In the first year of the MPCEPA's implementation, 91 Malaysian companies
benefited from the preferential tariffs accorded by Pakistan.

In 2008, MITI issued a total of 3,026 Certificates of Origin (COO) with
exports totalling RM4 million (US$1.1 million.)

The COO are documents that confirm a product's country of origin and are
needed by Malaysian companies to qualify for the preferential treatment offered
by Pakistan.

According to MITI, the Free Trade Agreement (FTA) also offers opportunities
in the service sector.

Pakistan has allowed a 60 percent foreign ownership for Malaysian service
suppliers setting up businesses in Pakistan.

Malaysian has also gained new, exclusive and more liberalised market access
than what other countries are able to get, through the World Trade Organisation
(WTO).

The newly liberalised sectors are professional services such as legal,
accounting, auditing and book-keeping, architectural and veterinary services;
business services, telecommunication and distribution services.

Others sectors include educational, environmental, medical and dental
services, recreational, cultural and sporting activities and rail, road
transport services.

The FTA Services Unit of the Malaysia External Trade Development Corporation
(Matrade) provides assistance to exporters in identifying products enjoying
preferential tariff treatment.

Further information may be obtained at MITI through Jamaliah Hassan at 603-
6203 4807, from Matrade through Saifuddin Khalid at 603-6207 7632 or by
accessing www.miti.gov.my.

Malaysia's trade with Pakistan from January to November 2008 amounted to
RM5.7 billion, comprising exports of RM5.3 billion and imports totalling RM395.5
million.

The FTA with Pakistan provides a greater opportunity for the business
community of both countries to further expand their bilateral trade and
investment linkages.

The agreement will also enable the Malaysian business community to use
Pakistan as the base to expand their business in the South Asia region.
-- BERNAMA