ANKARA: The Malaysia-Turkey Free Trade Agreement (MTFTA) will come into effect on Aug 1, after almost four years of intense negotiations between the two countries that began in May 2010.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in a statement that both countries would eliminate and bind duties on 70% of the tariff lines upon entry into force of FTA.
After a period of eight years, duties will be reduced/eliminated for almost 86% of tariff lines,” he said.
Turkey, with a population of 74 million people, holds vast market potential. “I urge the Malaysian business community to take full advantage of the opportunities offered under this FTA, which can also help strengthen bilateral trade and economic linkages on a long-term basis,” he said.
In 2014, total trade between Malaysia and Turkey amounted to USD$969mil (RM3.69bil). Malaysia’s exports to Turkey totaled USD$752mil (RM2.86bil), while imports amounted to USD$217mil (RM826.21mil).
Key exports to Turkey comprise textiles and clothing, chemicals and chemical products, palm oil, manufactures of metal, rubber products, electrical and electronic (E&E) products. Imports from Turkey include textiles and clothing, machinery appliances and parts, iron and steel products, chemicals and chemical products, other agriculture produce, electrical and electronic products.
Malaysian exports that will benefit from immediate duty-free treatment in Turkey include selected textiles and apparel, E&E products, chemicals, iron and steel products, machineries, wood products, leather products and all rubber products,” Mustapa said.
On other strategic products, including iron and steel, both counties will phase-out import duties in stages within an eight-year period, starting from the day the agreement enters into force. Turkey will also eliminate all existing additional duties (ranging from 20%-30%) on textiles, apparel and footwear, which currently affect more than a thousand tariff lines.
