EU approves start of free-trade talks with Malaysia
Deutsche Presse-Agentur | Sep 10, 2010
EU approves start of free-trade talks with Malaysia
Brussels — European Union trade ministers on Friday approved the launch of free trade negotiations with Malaysia, in a move which officials hope could stimulate billions of dollars of business flows.
The EU is Malaysia’s fourth most important trading partner, while Malaysia is the EU’s 22nd most important partner. Trade flows reached 24.4 billion euros (31 billion dollars) in 2009.
At present Malaysia has no individual trade pact with the EU, falling instead within the EU’s general tariff preference system.
Trade ministers authorised the launch of bilateral negotiations on a free trade agreement with Malaysia at their regular meeting in Brussels, officials confirmed.
According to EU figures, some 30 per cent of Malaysian goods currently face tariffs to enter the bloc. The abolition of such barriers is therefore expected to boost trade significantly.
Three quarters of EU imports from Malaysia consist of machinery and other manufactured goods. The bloc’s main exports are machinery, chemicals and manufactured goods, according to EU figures.
Officials would not predict how long free-trade talks could last. Such negotiations are politically sensitive and unpredictable in Europe, as any member state can veto any agreement of which it disapproves.
