Malaysia is a country that is known for its vibrant economy and international trade relations. The country has engaged in several trade agreements with various countries and international organizations that have helped it to expand its economic opportunities and global ties. In this article, we will explore some of Malaysia`s trade agreements and their impact on the country`s economy.
The Trans-Pacific Partnership Agreement (TPPA)
The TPPA is a trade agreement between Malaysia and several other countries, including the United States, Japan, and Vietnam. The agreement`s primary objective was to promote economic growth through free trade among the partner nations. The TPPA was expected to benefit Malaysia`s economy by eliminating tariffs on certain products and services, opening up new markets, and improving the country`s investment climate.
However, Malaysia`s participation in the TPPA was met with some criticism from various sectors of society. Some critics raised concerns about the impact of the agreement on Malaysia`s sovereignty, labor rights, and environment. Ultimately, Malaysia withdrew from the agreement in early 2017, citing concerns about the potential negative impact on the country`s economy and sovereignty.
The ASEAN Free Trade Agreement (AFTA)
The AFTA is a trade agreement between Malaysia and the other member states of the Association of Southeast Asian Nations (ASEAN). The agreement`s primary objective is to promote regional economic integration and development by reducing tariffs and barriers to trade among the member states.
The AFTA has been a significant driver of Malaysia`s international trade, with the country`s exports to other ASEAN member states increasing significantly since the agreement`s implementation. In addition, the AFTA has helped to attract foreign investment to Malaysia, with many companies using the country as a hub to access the broader ASEAN market.
The Malaysia-Australia Free Trade Agreement (MAFTA)
The MAFTA is a trade agreement between Malaysia and Australia that came into effect in 2013. The agreement is designed to eliminate tariffs on goods and services traded between the two countries and promote increased investment and economic cooperation.
The MAFTA has been beneficial for both Malaysia and Australia. Malaysia has gained access to the Australian market, which is a significant market for Malaysian exports, particularly in the agriculture and food industries. In addition, the agreement has opened up new opportunities for investment between the two countries, particularly in areas such as renewable energy and education.
Conclusion
Malaysia`s engagement in various trade agreements has played a crucial role in its economic growth and development. While some agreements have been met with criticism and controversy, others have been successful in increasing Malaysia`s access to global markets and promoting economic integration. As Malaysia continues to navigate its trade relations, it is essential to balance economic opportunities with national interests and the concerns of its citizens.