Background:
During the official visit of the Prime Minister of Malaysia to Pakistan from 15-18 February 2005, Malaysia and Pakistan agreed to negotiate a Free Trade Agreement (FTA).
Scope:
The FTA between Malaysia and Pakistan to include:
• liberalisation of trade in goods and services, and investments; and
• economic cooperation activities in areas of mutual interest.
Status:
Prior to the conclusion of negotiations on the FTA, Malaysia and Pakistan have concluded an Early Harvest Programme (EHP) which was signed on 1 October 2005 and implemented on 1 January 2006. The validity period of the EHP has been extended to 31 December 2007.
The EHP covers products with tariffs of 10 per cent and below. Products with tariffs of 5 per cent and below have been eliminated and those above 5 per cent and below 10 percent have been given a margin of preference of 50 per cent.
Malaysia has offered a total of 114 products covering yarn, clothing and textile products. Pakistan has offered a total 125 products covering electrical appliances and machinery, plastics products, chemical products, rubber and timber products.
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Ministry of International Trade and Industry
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