KUALA LUMPUR: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) between Malaysia and the United Kingdom (UK) is expected to boost trade and investment for both nations.
The agreement, which will enter into force for the UK on December 15, 2024, will be the first free trade agreement between the UK and Malaysia.
The Ministry of Investment, Trade and Industry (Miti) said the UK remains a strategic trading partner to Malaysia, with total trade reaching RM14 billion (US$ 3.0 billion) in the first ten months of 2024.
"Moving forward, with both countries in the CPTPP, I am confident that these numbers will improve, through increased Malaysian exports.
"Furthermore, UK exporters can also leverage on the 16 FTAs the Malaysia has ratified, including the Regional Comprehensive Economic Partnership (RCEP) and many others," he said at the official ceremony of UK countdown to CPTPP entry-into-force here, today.
Tengku Zafrul said the CPTPP imposed will result in 94 per cent of tariffs eliminated between the UK and Malaysia over the course of the implementation period.
He said the CPTPP will enable local businesses to benefit from duty-free exports, boosting not only established sectors like electrical and electronics (E&E) and machinery and parts but also opening new prospects for Malaysia's commodities such as palm oil, rubber, and timber in the UK market.
"As Malaysia's first bilateral Free Trade Agreement with the UK, Malaysian exporters now have better access to the UK market, whose economy breached US$4 trillion in 2023.
"Malaysia's CPTPP membership has certainly boosted our competitiveness, while fostering better integration of our exporters into the global supply chain," he said.
In reiterating the benefits of CPTPP, Malaysia acting British high commissioner David Wallace said the UK's accession to the CPTPP marks a significant milestone in the nation's trade relationship with Malaysia.
"By eliminating tariffs and streamlining trade processes, we are creating growth and a more prosperous future for both nations.
"It is time for businesses to prepare to take advantage of the agreement," Wallace added.