FREE TRADE AGREEMENT (FTA) What is Free Trade Agreement (FTA) Free Trade Agreement (FTA) is an agreement between two or more countries, where the countries involved have agreed to provide preferential treatment in each other’s markets. Each FTA partner offers flexibility or incentives to each other for the purpose of trade, investment, service provision and trade facilities as well as economic cooperation. Why FTA Is Important FTA Covers Areas Such As: • Obtain better market access • Facilitate and promote trade, investment and economic cooperation • Enhance competitiveness of Malaysia’s exporters • Capacity building in specific areas through technical cooperation • investment • trade facilitation • Intellectual Property Right (IPR) • trade competition policy • economic-related cooperation. FTA allows Malaysian exporters to receive preferential treatment and better market access. Malaysian exporters will also enjoy cost savings from the elimination/reduction of custom duties and the removal of stringent conditions for customs procedures to facilitate trade. As for the services sector, FTA provides better market access to various commercial and professional services from Malaysia. FTA also provides better platform for Malaysian investors to invest in FTA partner countries.
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