Feasibility Study On Malaysia-Republic Of Chile Free Trade Area Kuala Lumpur
Monday, January 23, 2006
Feasibility Study On Malaysia-Republic Of Chile Free Trade Area Kuala Lumpur, Thursday, 19 January 2006
Minister of International Trade and Industry, Hon. Dato' Seri Rafidah Aziz and Chilean Foreign Minister, Hon. Ignacio Walker announced the establishment of a Joint Study Group ( JSG ) to undertake a feasibility study on a Malaysia-Chile Free Trade Area ( FTA ).
The establishment of the JSG is the follow-up to the agreement reached during a bilateral meeting on 18 November 2005 in Busan, South Korea between the Prime Minister of Malaysia and the President of the Republic of Chile, to initiate a study on the feasibility of a Malaysia-Chile FTA.
The Ministers, in a bilateral meeting held today, endorsed the Terms of Reference (TOR) of the JSG. The TOR of the JSG includes :
| *
| identify the strategic and economic benefits that Malaysia and Chile can derive from a Free Trade Area Arrangement; | |
| *
| review the existing institutional framework , infrastructure and mechanisms in bilateral trade and economic relations and recommend measures to facilitate and optimise such cooperation; | |
| * | identify possible policy framework for enhancing trade in goods, services and investment including: |
| o | the feasibility of an FTA in Goods; | |||
| o
| expedite the expansion of trade in services, including progressive liberalisation of trade in services on a preferential basis with substantial sectoral coverage; | |||
| o
| evolve appropriate framework and modalities for investment cooperation with a view towards promoting investment flows; and | |||
| o
| enhance economic cooperation in areas of mutual interest such as financial services, information and communication technology, bio-technology, pharmaceutical, healthcare, education and human resource development (HRD), infrastructure and tourism. |
The JSG will submit its recommendations to both Governments by the end of 2006.
Chile is Malaysia's fourth largest trading partner among the South American countries. In 2004, bilateral trade increased by 77.7 per cent to US$232.4 million. Malaysian exports to Chile were valued at US$95.0 million while imports were valued at US$137.3 million.
From January to November 2005, total trade amounted to US$197.8 million with Malaysian exports recorded at US$58.2 million and imports at US$139.7 million.
Malaysia's main exports to Chile in 2004:
* electrical and electronic products;
* rubber products;
* wood products;
* machinery, appliance and parts; and
* chemicals and chemical products.
Malaysia's main imports from Chile :
* manufactures of metals;
* metalliferous ores and metal scrap;
* paper and pulp products;
* fresh, chilled or frozen seafood; and
* chemicals and chemical products.
Among Malaysian companies currently in operation in Chile are:
| Company | Activities | ||
i)
| MASSCORP CHILE S.A and IJM Corporation | :
| Construction of 480 apartments, 2,000 houses and a commercial centre in San Bernado. |
| ii) | IMPORTADORA APACHI LTDA. | : | Trading activities |
| iii) | QUALYFOOD LTDA. | : | Restaurant and trading |
iv)
| TROPICAL CANNING (M) SDN BHD | :
| Wholly owns Safcol S.A. which is involved in canning of seafood products |
Ministry of International Trade and Industry
January 2006
www.kln.gov.my/perwakilan/santiago