Malaysian chemical firms urge govt to ratify CPTPP without delay

04 Aug '22

1 min read

Pic: Shutterstock

The Chemical Industries Council of Malaysia (CICM) recently called on the government to ratify at the earliest the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to benefit domestic chemical companies, which can access and boost their exports to Canada, Mexico and Peru using better price competitiveness following substantial elimination of tariffs.

Canada, Mexico and Peru now impose tariffs of up to 270 per cent, 30 per cent and 9 per cent respectively, a CICM statement said.

The high tariffs affect key exports, including those of organic and inorganic chemicals, to CPTPP countries, it was quoted as saying by a news agency.

With CPTPP, these tariffs will be fully eliminated by 2034 across all signatory countries.

CPTPP countries accounted for almost 22 per cent of Malaysia’s chemical exports in 2019, with major export destinations being Singapore, Japan and Vietnam, according to the association.

The deal can also increase investment attractiveness of Malaysia and spur develop domestic capabilities, especially in specialty chemicals, by establishing high standards of protection for investors and further strengthen the country’s competitive advantage, CICM added.

Fibre2Fashion News Desk (DS)

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