Newsletter No. 327
News-Analysis
July 14, 2006

 

THE JAPAN-MALAYSIA TRADE AGREEMENT TAKES EFFECT

Yesterday, the Japan-Malaysia FTA -- which was signed last December -- took effect. Malaysia has thus become the third country, and the first Muslim country, to have an FTA with Japan. The agreement is officially called the Japan-Malaysia Economic Partnership Agreement (JMEPA).

On this occasion, in order to participate in the first joint committee meeting of JMEPA, Malaysia’s International Trade and Industry Minister, Datuk Seri Rafidah Aziz, came to Tokyo. The Japanese side was represented by METI Minister Toshihiro Nikai, Foreign Minister Taro Aso, Finance Minister Sadakazu Tanigaki, and Agriculture Minister Shoichi Nakagawa. Meeting with Ms. Aziz in Osaka on the 12th, Nikai encouraged Japanese companies to increase their investments in Malaysia.

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JOINT PRESS STATEMENT ON THE OCCASION OF THE ENTRY INTO FORCE OF THE AGREEMENT BETWEEN THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF MALAYSIA FOR AN ECONOMIC PARTNERSHIP
July 13, 2006

The Minister for Foreign Affairs of Japan, the Minister of Finance of Japan, the Minister of Agriculture, Forestry and Fisheries of Japan, and the Minister of Economy, Trade and Industry of Japan, and the Minister of International Trade and Industry of Malaysia, met on 13 July 2006 in Tokyo to hold the first meeting of the Joint Committee established under the Agreement between the Government of Japan and the Government of Malaysia for an Economic Partnership (hereinafter referred to as "the Agreement"). The Agreement was signed on 13 December 2005 in Kuala Lumpur by the Prime Ministers of both countries and, after the completion of the respective necessary legal procedures, entered into force today.

At this meeting, the Joint Committee made decisions necessary for the implementation of the Agreement, including the adoption of the Operational Procedures referred to in Chapter 3 (Rules of Origin) and the decision on Implementation of Tariff Rate Quota.

The Ministers reaffirmed the importance of the effective implementation of the Agreement. They shared the view that the Agreement will contribute toward enhancing the cross-border flow of goods, services and capital between Japan and Malaysia, as well as bilateral cooperation in fields of mutual interest. They underscored that the Agreement will enable both countries to make the most of their economic complementarity and further promote the development of their respective economies.

The Ministers are pleased to note that, even before the entry into force of the Agreement, the private sectors of both countries have been exploring new trade and investment opportunities in various fields. The Ministers expect that, with the entry into force of the Agreement, these activities of the private sectors will be further accelerated and contribute to enhancing the economic ties of both countries. The Ministers also stressed that the Agreement constitutes a solid basis for the strategic partnership between Japan and Malaysia.