The Australian and Malaysian Governments have signed a comprehensive free trade agreement (FTA) that will see significant reductions in tariffs in bilateral trade.

 

Signed by Minister for Trade, Craig Emerson, and his Malaysian counterpart, Mustapa Mohamed, the deal will solidify Australia as Malaysia’s closest ASEAN trade partner.  The agreement will see Australian goods enjoy the same tariff-free entry into Malaysia as currently enjoyed by Singapore.

 

The FTA will guarantee tariff-free entry for 97.6 per cent of current goods exported to Malaysia once it comes into force, and will rise to 99 per cent by 2017.

 

Malaysian exporters will enjoy duty-free entry into the Australian market.

 

Also signed was an agreement to provide a three-year package of up to 21 short and long-term scholarships, fellowships, awards and exchanges in a bid to support Malaysia’s current suite of economic reforms.

 

Malaysia is Australia's 10th largest trading partner, with two-way trade worth almost $16 billion in the 2010-11 financial year.

 

Australian exporters of automotive parts, iron, steel and dairy products will benefit from improved market access under the agreement.

 

The FTA will also help diversify the trading relationship by opening Malaysia's services sector to Australian companies.

 

Malaysia has committed to allowing majority Australian ownership of service providers in a range of industries, including telecommunications, insurance, education, tourism, research and development, accountancy and mining-related services.