In a press statement on Friday, Mustapa Mohamed, Malaysia's Minister of International Trade and Industry and Tim Groser, New Zealand’s Minister of Trade, announced that the Malaysia-New Zealand Free Trade Agreement (FTA) will function, starting the first of August.
This free-trade patch was signed in Kuala Lumpur, Malaysia, last year in an attempt to increase the business trade and the investments between the two countries through eliminating tariffs on 99.5% of New Zealand’s exports to Malaysia and through enhancing the Malaysian market availability for the New Zealand's services, in the fields of education, environment and others.
By 2016, almost all the import-export tariffs on investments and goods would be reduced to a minimal, on both the agricultural and the industrial products and services.
Malaysia is in the 8th place on New Zealand’s list of importers, depending on paper, plastics, automotive components, and chemical products. Whereas, New Zealand would be opened to the Malaysian market, especially cocoa products, carpet, tires, iron products and wood furniture.
Minister Groser commented on the agreement, expressing his confidence in it and in the potential era of economic growth. He added, "Trade agreements that New Zealand has now concluded, will help our businesses become even more competitive on the world stage and see our connections with Malaysia grow even stronger".