India, Malaysia implement trade pact

June 30th, 2011 - 3:43 pm ICT by IANS  

New Delhi, June 30 (IANS) India and Malaysia will operationalise from Friday a Comprehensive Economic Cooperation Agreement aiming to boost bilateral trade to $15 billion by 2015 from nearly $10 billion last year.

Malaysia is the fourth country after Singapore, South Korea and Japan with which India has a bilateral Comprehensive Economic Cooperation Agreement (CECA), ministry of commerce and industry said in a statement Thursday.

The two countries signed the trade pact in February this year. The pact is expected to give a new impetus to bilateral trade and flow of investment.

The agreement envisages liberalisation of trade in goods, trade in services, investments and other areas of economic cooperation.

The trade in goods package takes the tariff liberalisation beyond the India-ASEAN free trade agreement (FTA) commitments, which were implemented by both sides Jan 1, 2010.

Under CECA, the items for which India has obtained market access from Malaysia include basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments, which are all items of considerable export interest to India, the statement said.

“At the same time, adequate protection has been provided by the Indian side for sensitive sectors such as agriculture, fisheries, textiles, chemicals and auto,” it said.

In the services sector the two countries have agreed to facilitate temporary movement of business people including contractual service suppliers, and independent professionals in commercially meaningful sectors including accounting, medical, consultancy, architecture, urban planning and engineering.

The pact will also facilitate cross-border investments between the two countries.

It aims to promote investments and create a liberal, facilitative, transparent and competitive investment regime.

“The CECA creates an attractive operating environment for the business communities of both countries to increase bilateral trade and investment,” the statement said.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |