Leather industry to benefit from Malaysia/Pakistan FTA
13/11/2007
Malaysia and Pakistan have signed their first ever free trade agreement (FTA), the Malaysia-Pakistan Closer Economic Partnership (MPCEPA), which will come into effect on January 1, and will lead to the reduction or elimination of import taxes on many goods including leather and chemicals.
Under the FTA Malaysia will eliminate import duties on 74.5% of goods by 2012 — which make up 77.3% of imports from Pakistan such as leather, fruits, natural rubber, tea, cocoa and coffee, processed food, machinery and equipment, chemicals and chemical products, plastics and pharmaceuticals — and reduce import tariffs on 18% of other goods. Pakistan will eliminate duties on 43.2% of agricultural and industrial imports, which include chemical products, electrical and electronic products, machinery and parts, and textiles and clothing, and will reduce import duties on seven palm oil products.
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