MARKET DEVELOPMENT
Malaysia To Keep Export Duty Structure For Palm Oil, Palm Oil Products Under TPPA Talks
Malaysia To Keep Export Duty Structure For Palm Oil, Palm Oil Products Under TPPA Talks
21/11/2013 (Bernama) - Malaysia maintains its stance on keeping the export duty structure for palm oil and palm oil products under the Trans-Pacific Partnership Agreement (TPPA) negotiations, said Ministry of International Trade and Industry (MITI) officials.
MITI Free Trade Agreement (FTA) Policy and Negotiations Coordination Division Director Datin Che Mazni Che Wook said negotiations on this market access issue for trade in goods were still ongoing.
"The TPPA negotiating members are negotiating the elimination of tariffs without prior exclusions. However, for Malaysia, we will seek for gradual liberalisation of tariffs upon a certain period for sensitive products.
"TPP is still under negotiations and there are still a lot more issues to be settled. Malaysia has concerns in the areas of government procurement, state-owned enterprises, intellectual property rights, labour and environment.
"Malaysia's concerns have been expressed throughout the negotiations. In terms of challenges with regard to palm oil, Malaysia is still negotiating tariff reduction and elimination, for palm oil and palm oil products, because there are negotiating partners who still want to maintain import duties for some of their products which are competing with our products," she said.
Che Mazni was delivering a talk on the impact of TPPA on Palm Oil Trade at the International Palm Oil Congress (PIPOC 2013) here Wednesday.
For market access in trade in goods, she said negotiations are focused on markets which Malaysia has yet to have an FTA with, such as the United States, Canada, Peru and Mexico.
These markets, at the moment, are imposing higher tariff on palm oil products, she said.
For example, the US and Mexico are charging import duty of 12.3 per cent and 20 per cent, respectively, on margarine, while Peru charges five per cent.
Canada also will start imposing 11 per cent import duty on Malaysia's Refined Bleached Deodorised (RBD) Palm Oil and Palm Kernel Oil next year, once Malaysia is being graduated from the General Preferential Tariff.
With TPPA, Malaysia's palm oil can still enjoy lower or zero import duty in Canada's market compared to palm oil imported from other countries.
Thus, with TPPA, she said Malaysia's palm oil would be more price competitive due to the preferential tariff treatment.
With more transparent and predictable investment environment, Malaysia has the potential to attract more foreign direct investments such as in oleo-chemicals compared with other countries.
In 2012, Malaysia's palm oil exports to TPPA countries amounted to RM13.6 billion, while as of August 2013, it amounted to RM7.3 billion.
MITI Free Trade Agreement (FTA) Policy and Negotiations Coordination Division Director Datin Che Mazni Che Wook said negotiations on this market access issue for trade in goods were still ongoing.
"The TPPA negotiating members are negotiating the elimination of tariffs without prior exclusions. However, for Malaysia, we will seek for gradual liberalisation of tariffs upon a certain period for sensitive products.
"TPP is still under negotiations and there are still a lot more issues to be settled. Malaysia has concerns in the areas of government procurement, state-owned enterprises, intellectual property rights, labour and environment.
"Malaysia's concerns have been expressed throughout the negotiations. In terms of challenges with regard to palm oil, Malaysia is still negotiating tariff reduction and elimination, for palm oil and palm oil products, because there are negotiating partners who still want to maintain import duties for some of their products which are competing with our products," she said.
Che Mazni was delivering a talk on the impact of TPPA on Palm Oil Trade at the International Palm Oil Congress (PIPOC 2013) here Wednesday.
For market access in trade in goods, she said negotiations are focused on markets which Malaysia has yet to have an FTA with, such as the United States, Canada, Peru and Mexico.
These markets, at the moment, are imposing higher tariff on palm oil products, she said.
For example, the US and Mexico are charging import duty of 12.3 per cent and 20 per cent, respectively, on margarine, while Peru charges five per cent.
Canada also will start imposing 11 per cent import duty on Malaysia's Refined Bleached Deodorised (RBD) Palm Oil and Palm Kernel Oil next year, once Malaysia is being graduated from the General Preferential Tariff.
With TPPA, Malaysia's palm oil can still enjoy lower or zero import duty in Canada's market compared to palm oil imported from other countries.
Thus, with TPPA, she said Malaysia's palm oil would be more price competitive due to the preferential tariff treatment.
With more transparent and predictable investment environment, Malaysia has the potential to attract more foreign direct investments such as in oleo-chemicals compared with other countries.
In 2012, Malaysia's palm oil exports to TPPA countries amounted to RM13.6 billion, while as of August 2013, it amounted to RM7.3 billion.