18/02/2011 (Business Times) - THE Comprehensive Economic Cooperation Agreement (CECA) between Malaysia and India will be inked today, providing businessmen better access to the goods and services in the two countries.

The date for the signing has been postponed a couple of times despite both governments calling for an early date.

Both countries had hoped to "lock in" the document in late October, in conjunction with Prime Minister Dr Manmohan Singh's visit to Malaysia.

Although the negotiating teams had concluded the talks by September, several loose ends related to legal aspects had to be tied up.

International Trade and Industry Minister (Miti) Datuk Seri Mustapa Mohamed and Indian Commerce and Industry Minister Anand Sharma will sign on behalf of their respective country, in Putrajaya, to be witnessed by Prime Minister Datuk Seri Najib Razak.

According to a statement from the Indian High Commission, CECA will cover trade in goods, services, investment as well as other areas of economic cooperation.

The International Trade and Industry Ministry has hoped to raise the interest of the private sector of both countries with the free trade agreement (FTA), which will be in addition to the Asean-India FTA on goods, which came into effect in January last year.

This trade pact is more extensive in that it includes services, investment, economic cooperation, customs, sanitary and phytosanitary measures, and technical barriers to trade chapters.

Under CECA, Malaysia has also been granted better concessions for palm oil and palm oil products, cocoa and cocoa products, and textiles and apparel - areas excluded in the regional trade pact.

Miti said bilateral trade also improved with the impact of the Asean-India FTA.

During the first six months since it came into effect, the regional trade pact for goods attracted exports valued at RM888.3 million.

The main products being traded using the preferential arrangement are chemical products, electrical and electronic products and palm oil products.

Malaysia, which has slightly over 100 companies in India, hopes to increase its presence in the country further.

According to the ministry, Indian investments to Malaysia totalled US$15.9 million (RM48.4 million) last year.

It said exports to the republic totalled US$6.5 billion (RM19.8 billion), while imports totalled US$2.4 billion (RM7.3 billion).

India ranks as Malaysia's 13th largest trading partner in 2010 and it is estimated that with the pact in place, trade will jump 50 per cent to US$15 billion (RM46.5 billion) by 2015.