JOINT PRESS STATEMENT
Japan-Malaysia Economic Partnership Agreement
In the field of industrial products, both sides will eliminate tariffs on essentially all goods within 10 years from the date of the entry into force of the JMEPA.
(a) Autos and auto components and parts
(i) Market access improvement by Malaysia
Tariffs on autos and auto components and parts in Malaysia will be eliminated as agreed.
|Completely Knocked Down (CKD):||immediately eliminated|
|Auto components and parts other than CKD:||0-5% in 2008 and eliminated by 2010|
|Passenger cars exceeding 2000cc up to 3000cc, MPV exceeding 3000cc, Trucks exceeding 20 tonnes, and buses:||gradually eliminated by 2010|
|Passenger cars exceeding 3000cc:||0-5% in 2008 and eliminated by 2010|
|All the other CBUs other than above:||gradually eliminated by 2015|
(ii) Cooperation in the automotive sector
Government of Japan and Government of Malaysia, together with participation of their respective industries, will undertake joint initiatives to further promote competitiveness of autos and auto components and parts industry in Malaysia for better market expansion.
(b) Iron and Steel
Market access improvement by Malaysia
Malaysia provides import duty exemption for products from Japan which are directly used in the manufacturing activities subject to agreed conditions.
Tariffs on essentially all iron and steel products will be eliminated within 10 years.
(c) Market access improvement by Japan
The tariffs on essentially all the goods in Japan will be eliminated immediately.
Tariffs on most agricultural, forestry and fishery products will be eliminated within 10 years from the date of the entry into force of the JMEPA.
2. Market access improvement by Japan
(a) Agricultural products
- Mangoes, Mangosteens, Durians, Papayas, Rambutans, Okras: Immediate tariff elimination
- Bananas: Creation of Tariff Rate Quota (TRQ) on fresh bananas:
- In quota rate: Duty free
- TRQ quantity: 1,000 metric tons per year with renegotiation on TRQ volume after the fourth year of implementation
- Margarine: Tariff reduction: 29.8% → 25% in 5 years, renegotiation in the 5th year
- Cocoa preparations (not containing added sugar): Tariff elimination
(b) Forestry products
- Forestry products other than plywood: Immediate tariff elimination
- Plywood: Renegotiation
- national timber quality evaluation system
- enhancing trade in wood products from sustainable resources
(c) Fishery products
- Shrimps, prawns and jellyfish: tariff elimination
(d) Sensitive products for exclusion or re-negotiation:
- State trading products (rice, wheat, barley and designated dairy products), beef, pork, starches, fishery products under import quota, etc.
3. Market access improvement by Malaysia
Immediate tariff elimination on apples, pears and persimmons.
Comprehensive coverage including the following sectors:
- professional services;
- financial services;
- health related and social services;
- tourism and travel related services; and
- rental and leasing of machinery and equipment without operators, including construction machinery, office machinery, medical machinery;
- maintenance and repair of machinery and equipment on a fee or contract basis;
- accounting, auditing services;
- engineering services; and
- computer and related services.
1. Specific Fields of Cooperation
(a) Agriculture, Forestry, Fisheries and Commodities
(b) Education and Human Resource Development
(c) Information and Communications Technology
(d) Science and Technology
(e) Small and Medium Enterprises
2. Early Harvest Cooperation Projects
24 projects and programmes are selected as "Early Harvest Cooperation Projects", which will be implemented immediately upon entry into force of the JMEPA.
3. Koizumi-Abdullah Training Programme for Economic Partnership (Economic Partnership Programme: EPP)
Under this new programme, Japan will accept approximately 1,000 trainees over the next ten years from the relevant Malaysian institutions.
The programme will enhance the "Look East Policy", which has significantly contributed to Malaysia's human resource development.
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