Product specific rules for textile, clothing & jewellery in FTA with Pakistan

28 Feb '06

4 min read

Ministry of International Trade and Industry (MITI) informed that the agreement on the Early Harvest Programme (EHP) for the Free Trade Area (FTA) between Malaysia and Pakistan will be implemented, on 1 January 2006.

1. The Agreement was signed by Hon. Dato' Seri Rafidah Aziz, Minister of International Trade and Industry on behalf of the Government of Malaysia and Hon. Dr. Abdul Hafeez Shaikh, Minister for Privatization and Investment on behalf of the Government of the Islamic Republic of Pakistan on 1 October 2005 in Kuala Lumpur.

2. The EHP Agreement shall expire upon entry into force of the FTA or on 31st March 2007, whichever is earlier.

3. The EHP covers selected products with Most Favoured Nation (MFN) tariffs of 10 per cent and below and upon implementation products with MFN tariffs of: 5 per cent will be eliminated; and 10 per cent will be accorded a margin of preference of 50 per cent.

4. Pakistan's EHP offer to Malaysia covers 5.49 per cent of import value (RM146.3 million based on the 2004 import statistics) involving 125 tariff lines . The products include: machinery, mechanical equipments and appliances (36.6 percent of total EHP value); plastic products (30.8 per cent); chemical products (20.2 per cent); rubber and rubber products (6.0 per cent); and timber products (5.4 per cent).

5. Malaysia's offer to Pakistan covers 114 tariff lines covering import value of RM22.1 million or 10.97 per cent of its total imports from Pakistan. The products are: textile and clothing (95.3 per cent of total EHP value); agricultural products (4.7 per cent); and jewellery.

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