Australia and Malaysia held the first virtual meeting of the Malaysia-Australia Free-Trade Agreement (MAFTA) Joint Commission (JC) on May 28, the summary of which was released on Thursday.
Simon Farbenbloom, the Assistant Secretary from the Regional Trade Agreements Division of Australia’s Department of Foreign Affairs and Trade chaired the meeting with Syed Mohammad Faizal Syed Mohammad Dardin, the MAFTA Chief Negotiator and Director from the Investment Policy Section, Investment Policy and Trade Facilitation Division of Malaysia’s Ministry of International Trade and Industry.
Before discussing the implementation of MAFTA, both sides acknowledged the delay in conducting the meeting due to COVID-19. They also reiterated the importance of the Free Trade Agreements (FTAs) and stressed economic cooperation between both sides to combat the ongoing pandemic.
Moreover, both countries acknowledged the work done by the Sanitary and Phytosanitary Working Group of MAFTA, which focused on understanding the food regulatory processes and biosecurity of both nations. The representatives also discussed Australia’s dairy import conditions along with Malaysian milk quotas and rice market arrangements.
Apart from domestic trade policies, both countries considered constituting an additional subsidiary body for the JC and promised to start consultations soon. The representatives also reviewed the agendas laid down under Article 21.7 of MAFTA, which instructs both nations to review the trade deal every five years from the commencement date.
Australia and Malaysia first conducted negotiations for an FTA in 2012, which was implemented on January 1, 2013. The agreement was signed in Kuala Lumpur by Australia’s former Minister for Trade, Craig Emerson, and Malaysia’s Minister for International Trade and Industry, Mustapa Mohamed. MAFTA is divided into 21 different sections and is intended to boost economic cooperation, trade and investment. The agreement covers trade in goods, sanitary and phytosanitary measures, and business in the services and telecommunications sectors.
The agreement also promotes investment and enforcement of intellectual property rights to enhance trade and investments and accommodate competition policy. Additionally, the agreement facilitates the migration of people engaged in trade and investments and a comprehensive and transparent immigration policy for people migrating for business purposes while protecting its domestic labour and border security.
Under MAFTA, 99% of the Australian good exported to Malaysia are tariff-free, according to Australia’s Department of Foreign Affairs and Trade. In return, Australia has eliminated tariffs on goods imported from Malaysia.
The bilateral Free-Trade Agreement between both countries complements the ASEAN-Australia-New Zealand FTA. The ASEAN-Australia-New Zealand was hosted in Lao People's Democratic Republic in 2004 and opened up new economic opportunities for ASEAN, Australia, and New Zealand. Both the countries agreed to conduct a second MAFTA Joint Commission meeting in 2022.
SUMMARY: First Meeting of the Malaysia-Australia Free Trade Agreement Joint Commission
Both sides reiterated the importance of the Free Trade Agreements (FTAs) and stressed economic cooperation between the nations to combat the COVID-19 pandemic.
June 25, 2021
SOURCE: WIKIPEDIA