25/01/2013 (Bernama) - Mexico's decision to exempt import duties on various types of vegetable oils opens up greater opportunities for Malaysian exporters venturing into the market, says Malaysia External Trade Development Corporation (Matrade).

The exemption, to be effective March 1, covers vegetable oils such as soybean oil and fractions, palm oil and its fractions, safflower oil and its fractions, coconut oil, palm kernel or babassu oil and its fractions, as well as fats and oils, animal or vegetable and their fractions.

Matrade said the exemption was to protect competition among domestic enterprises that used such oils as production inputs and the people's welfare considering the insufficient growth of domestic production of oilseeds.

Matrade's Trade Commissioner in Mexico Remee Yaakub advised Malaysian companies planning to enter the Mexican market to capitalise and strategise effectively as they have to compete with regional players.

"Malaysian companies may collaborate with suitable local partners to introduce products through new product launches.

"With palm oil included in the exemption, Malaysian companies may introduce the health benefits of palm oil to the market and market their products through an assertive awareness promotion," said Remee in a statement.

In 2011, Mexico imported edible oil worth more than US$1.5 billion, with 65 per cent contributed by vegetable-based oils.

Total vegetable oil imports in 2011 increased by 39.25 per cent as compared to the imports in 2010.