Malaysia - Chile
Wednesday, June 07, 2006
Malaysia-Chile FTA
Background
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| At a bilateral meeting between the Prime Minister of Malaysia and the President of the Republic of Chile on 18 November 2005 in Busan, both sides agreed to initiate a study on the feasibility of a Malaysia-Chile FTA. | |
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| Follow-up to this decision, Minister of International Trade and Industry, Hon. DatoÂ? 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) on Thursday, 19 January 2006. |
Scope
• | The Terms of Reference of the JSG includes: |
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| identify the strategic and economic benefits that Malaysia and Chile can derive from a Free Trade Area Arrangement; | ||
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| review the existing institutional framework, infrastructure and mechanisms in bilateral trade and economic relations and recommend measures to facilitate and optimise such cooperation; | ||
o | identify possible policy framework for enhancing trade in goods, services and investment including |
| . | the feasibility of an FTA in Goods; | |||
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| expedite the expansion of trade in services, including progressive liberalisation of trade in services on a preferential basis with substantial sectoral coverage | |||
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| evolve appropriate framework and modalities for investment cooperation with a view towards promoting investment flows; and | |||
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| 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 |
o | The JSG will submit its recommendations to both Governments by the end of 2006 |
Status
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| HE First Meeting of the JSG held in Malaysia on Tuesday, 28 February 2006 agreed on the structure of the Report and the work plan. | |
• | The Second Meeting of the JSG scheduled in early June 2006 is expected to progress work in drafting of the Report. |
Benefits
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| Chile is MalaysiaÂ?s fifth largest trading partner among the South American countries. In 2005, bilateral trade increased by 1.2 per cent to RM893.4 million. Malaysian exports to Chile were valued at RM328.9 million while imports were valued at RM564.5 million. |
( Updated as of 6 June 2006 )
www.kln.gov.my/perwakilan/santiago