Malaysia consistently ranks among Australia’s top ten largest trading partners with two-way trade value amounting to $25 billion. It is also Australia’s second largest trading partner in ASEAN. This week the Minister for Home Affairs has announced that the CPTPP will enter into force for Malaysia on 29 November 2022, leaving only Brunei and Chile to become active.
The bilateral trade relationship between Australia and Malaysia reached a significant milestone with the signing of the Malaysia-Australia Free Trade Agreement (MAFTA) which came into force on 01 January 2013. Australian industries that benefitted from that deal include milk, automotives, processed foods, plastics, chemicals and a range of manufactured products: wine, iron & steel, and rice.
This week the Australian Border Force (ABF) has issued Australian Customs Notice No. 2022/48: Customs (Comprehensive and Progressive Agreement for Trans-Pacific Partnership – Entry into Force for Other Parties) Notice 2022.
The notice advises that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will enter into force for Malaysia on 29 November 2022.
CPTPP entered into force for Australia, Canada, Japan, New Zealand, Mexico and Singapore on 30 December 2018, Vietnam on 14 January 2019, and Peru on 19 September 2021.
The ABF advises that following Preference Origin Country code is to be included with the table found in ACN 2018/37 for use from 29 November 2022:
Preference Origin Country Code: MY
Description: Malaysia.
The CPTPP is one of the most comprehensive trade deals ever concluded, delivering opportunities for Australian exporters, investors and firms engaged in international business. The Agreement has eliminated 98% of tariffs across a membership of a combined GDP of $14.2 trillion.
In a media release reported in our article a month ago, the assistant Minister for Trade Tim Ayres said that the regional nature of the CPTPP means Australian business, exporters and consumers all benefit from a common set of rules and more opportunities to reach new markets.
The CPTPP is already in force for Australia, alongside Canada, Japan, Mexico, New Zealand, Singapore, Peru, and Vietnam.
The CPTPP has not yet entered into force for Brunei Darussalam and Chile.
For more information about the CPTPP, refer to the ABF CPTPP web page.
Australia and Malaysia have a long-standing relationship. In January 2021, our prime ministers elevated the bilateral relationship to a Comprehensive Strategic Partnership (CSP). The CSP commits leaders to meet annually and is underpinned by three streams of cooperation: economic prosperity; society and technology; and defence and regional security.
According to available data, the main products that Australia exported to Malaysia last year were Coal Briquettes ($804M), Petroleum Gas ($756M), and Refined Copper ($402M). The main products that Malaysia exported to Australia were Crude Petroleum ($1.29B), Refined Petroleum ($1.12B), and Computers ($310M).
In June 2022, Australia’s Foreign Minister, Penny Wong, travelled to Kuala Lumpur and Kota Kinabalu (Sabah) – a region with longstanding ties to Australia and where the Foreign Minister is from. During the visit, Ms Wong reaffirmed Australia’s commitment as Comprehensive Strategic Partners and discussed economic recovery, climate action, education ties and health security. The visit showcased the deep and enduring friendship between Australia and Malaysia.
For information on all aspects of international trade, contact us here at Colless Young. As licensed Customs Brokers and Freight Forwarders, we handle your shipping and transport needs professionally, both import and export. We are based in Brisbane and offer a complete range of logistics services, by airfreight and sea cargo, through all Australian ports and airports.
