Free Trade Agreement Turkey Malaysia

This page lists the free trade agreements signed by Turkey. [1] In 1995, Turkey signed a customs union with the European Union for products other than agricultural products and services. Since 2018, the EU has been Turkey`s main trading partner, with 50% of its exports and 36% of its imports. [2] However, to take advantage of this, Malaysian companies must establish a production site in order to obtain a rule of Turkish origin, in accordance with Article 5 of the trade agreement. In Turkey, raw materials (refined palm oil) from Malaysia could be processed into industrial food ingredients or cooking fats and margarines for reallocating to these markets. Reconditioning in branded products is also an alternative that deserves to be considered, but it must be in accordance with the rule of origin. Further assessment of eligibility would require further country-based study, as each could be deferred with respect to the tariff lag, regional value content and de minimis threshold. Malaysia – Free Trade Agreement with Turkey (MTFTA) was signed by YB. Dato` Sri Mustapa Mohamed Minister of International Trade and Industry, Malaysia, and Hon. Nihat Zeybekci, Minister of Economy of the Republic of Turkey, on April 17, 2014 in Ankara, Turkey, after nine rounds of negotiations. The agreement came into force on August 1, 2015. It was Turkey`s second free trade agreement with an Asian country after South Korea and the first country in Southeast Asia. The MTFTA`s preferential tariffs on Malaysian palm oil give Malaysian palm oil a competitive advantage over other vegetable oils arriving in Turkey.

Under the agreement, Malaysian palm oil is subject to a 21.8% lower import tariff than other competing oils, with an import tariff of 31.2%. The agreement contains obligations to liberalize trade in goods between the two countries. Malaysia and Turkey will gradually reduce or eliminate tariffs on a considerable number of goods traded between the two countries. The following agreements have been replaced by the EU-Turkey customs union: at present, the free trade agreement covers only trade in goods, including market access, rules of origin, customs procedures and facilities, health and plant health measures, technical barriers to trade and trade assistance. It also includes chapters on economic and technical cooperation, transparency and dispute resolution. The agreement also includes an “evolving clause” (Article 14.3) which provides that one year after the agreement enters into force, the contracting parties will begin negotiations on trade in services and explanatory discussions on investments in order to broaden the scope of the free trade agreement. The negotiations aim to increase the volume of bilateral trade by $10 billion over the next three years. Trade between the two nations is currently $1.79 billion (2018). Currently, Indonesia has exported synthetic fibres, rubber products, wood products, oils and fatty products and many others.