Malaysia-New Zealand Free Trade Agreement (AANZFTA) Explained
The Malaysia-New Zealand Free Trade Agreement (AANZFTA) is a trade agreement that aims to increase economic cooperation and trade between Malaysia and New Zealand. The agreement covers a wide range of issues related to trade, including intellectual property, investment, and market access.
The AANZFTA was signed in 2009 and came into force on the 1st of August 2010. Since then, the agreement has been instrumental in promoting trade between Malaysia and New Zealand. Malaysia is New Zealand`s twelfth-largest trading partner, with two-way trade between the two countries worth NZ$1.5 billion in 2020.
Under the AANZFTA, tariffs on a vast range of goods exported from both countries have been reduced or eliminated. The agreement has also helped to establish a better environment for investment by providing transparent and predictable conditions for investors.
One of the key benefits of the AANZFTA for Malaysia and New Zealand is increased market access. The agreement has opened up new opportunities for products and services from both countries to enter each other`s markets. This has led to significant growth in trade between the two countries, particularly in the areas of agriculture, horticulture, and tourism.
The agreement also includes provisions to protect intellectual property rights. These provisions help to ensure that Malaysian and New Zealand businesses are not unfairly disadvantaged by the unauthorized use of their patents, trademarks, and copyrights.
The AANZFTA has played a crucial role in promoting bilateral trade and investment between Malaysia and New Zealand. However, there are still some challenges that need to be addressed. For instance, there is a need to enhance market access for certain products, such as agricultural and seafood products.
In conclusion, the Malaysia-New Zealand Free Trade Agreement (AANZFTA) is an essential agreement that has significantly enhanced economic cooperation and trade between Malaysia and New Zealand. The agreement has led to increased market access, reduced or eliminated tariffs, and improved investment conditions. However, there is still room for improvement, and both countries need to work together to address the remaining challenges and promote further trade and investment.