Free Trade Agreement Between Turkey And Malaysia
With regard to agricultural products, the contracting parties have asymmetrical eradication plans due to the sensitivity of the Turkish agricultural sector. In this area, at the end of the transitional period, 94% of Turkish exports and 47% of Turkish imports will benefit from duty-free access. In this sector, products classified as “highly sensitive” were excluded from plans to dispose of contracting parties. In addition, Turkey has granted a 30% tariff reduction for palm oil products. A free trade agreement is an international agreement between two or more countries to reduce or remove trade barriers and achieve closer economic integration. According to Bernama, Malaysia`s national news agency, the free trade agreement is expected to boost bilateral trade to $5 billion by 2018. Currently, bilateral trade between Malaysia and Turkey is $1.1 billion. Last year, bilateral trade increased by 86%, reflecting the increase in economic relations between the two countries. The agreement is Malaysia`s seventh bilateral free trade agreement after its agreements with Japan, Pakistan, New Zealand, Chile, India and Australia. Malaysia`s trade with Turkey increased by 50.2% to 8.42 billion.RM ($2.02 billion), up from $5.61 billion.RM in 2015. On 10 January 2014, then-Prime Minister Recep Tayyip Erdogan and former Malaysian Prime Minister Najib Razak said that relations between Turkey and Malaysia were being enhanced in terms of strategic partnership, a result of the progress made since the establishment of diplomatic relations between the two countries, as well as the depths of political, economic and cultural relations.
Malaysia and Turkey have signed a free trade agreement that is expected to boost trade to $5 billion by 2018. This page lists the free trade agreements signed by Turkey. [1] In 1995, Turkey signed a customs union with the European Union for products other than agricultural products and services. Since 2018, the EU has been Turkey`s main trading partner, with 50% of its exports and 36% of its imports. [2] “The Prime Minister (Recep Tayyip Erdogan) and I are both committed to a bilateral partnership and there is no clearer example of this commitment than the free trade agreement between Malaysia and Turkey that we will see this year,” Prime Minister Razak said in a policy speech at the business luncheon between Turkey and Malaysia organized by the Union of Chambers and Commodities Turkey. With regard to the similarities between Turkey and Malaysia, Mr Razak pointed out that, for manufactured goods, 70% of tariffs on both sides were granted duty-free access as soon as the free trade agreement came into force, while products considered sensitive to Turkey and Malaysia were subject to a dismantling period of 3 5 or 8 years old.
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