Australia-Malaysia Free Trade Agreement

About the Malaysia-Australia Free Trade Agreement negotiations

Malaysia is an important economic partner and regional neighbour for Australia. It ranks as our third largest trading partner in ASEAN and our tenth largest trading partner overall. Two-way goods and services trade between our two countries stood at $15.6 billion in 2010.

On 7 April 2005, Australia and Malaysia agreed to launch negotiations on a bilateral Free Trade Agreement (FTA). This decision to begin negotiations on an FTA builds on our already strong and broad-ranging bilateral relationship. It also follows consideration by our respective governments of comprehensive scoping studies into the likely impact of a bilateral economic agreement which suggest that an FTA between Australia and Malaysia will deliver substantial benefits to both countries.

The Australian Scoping Study was conducted in consultation with a wide range of Industry, State and Territory, and non-government groups, and it concluded that an FTA would deliver significant benefits to both countries.

Australia is seeking commitments from Malaysia that go further than the ASEAN-Australia-New Zealand Free Trade Agreement and result in a commercially meaningful package between the two countries. The Australian and Malaysian Prime Ministers have jointly committed to press for the finalisation of MAFTA by March 2012.

Key interests and benefits

• While Malaysian investment in Australia is strong, a free trade agreement would provide an important opportunity for Malaysia to increase its attractiveness as a destination for Australian investment, as well as investment from other countries.
• A free trade agreement could address barriers to Australian trade exports in important areas such as processed foods and agricultural products, manufactures and services trade. It might also cover important non-tariff barriers, which include import licensing for a number of products, applied partly with the aim of protecting infant and strategic industries.
• A priority objective for Australia in the FTA with Malaysia is achieving greater access for Australian services exports, including legal services, telecommunications, accounting services, architectural services, engineering services, education services, insurance services and banking.

News

February 2012 update

The 11th round of Malaysia-Australia Free Trade Agreement negotiations was held on 20 to 21 and 25 to 31 January in Kuala Lumpur.

February 2012 update on the Australia-Malaysia Free Trade Agreement negotiations

December 2011 update

Good progress was made during the 10th round of Malaysia-Australia Free Trade Agreement negotiations, held from 25 to 27 October and from 21 to 24 November in Canberra. The round was held against the background of the agreement reached between Prime Minister Gillard and Malaysia's Prime Minister Najib to conclude the MAFTA negotiations by March 2012.

December 2011 update on the Australia-Malaysia Free Trade Agreement negotiations

August 2011 update

Good progress was made during the 9th round of Malaysia-Australia Free Trade Agreement negotiations, held from 4 to 7 July 2011 in Kuala Lumpur. Rules of Origin (ROO) were not discussed in this round as both parties had previously agreed to schedule ROO negotiations from 1 to 4 August 2011.

August 2011 update on Australia-Malaysia Free Trade Agreement negotiations

Prime Minister agrees to accelerate talks on MAFTA - March 2011

During a joint press conference with Malaysia’s Prime Minister Najib in Canberra, Prime Minister Gillard committed to finalising the Malaysia-Australia Free Trade Agreement:

“…we have determined today that we will conclude this free trade agreement between our two nations within the coming year, and we want to see it concluded and signed before the anniversary of this visit next year.”

Transcript of joint press conference with Prime Minister Najib, Canberra, 3 March 2011.

November 2010 update

The 8th round of Malaysia-Australia Free Trade Agreement (MAFTA) negotiations was held in Canberra from 18-22 October 2010. The round made progress across the negotiating agenda, with the market access negotiations entering a more substantive phase. Australia provided Malaysia with a paper outlining the tariff offer that it was prepared to make and the commitments Australia would be seeking from Malaysia in return. Australia and Malaysia exchanged initial market access offers on services and investment.

November 2010 update on the Malaysia-Australia Free Trade Agreement negotiations

April 2010 update

The 7th round of Malaysia-Australia Free Trade Agreement (MAFTA) negotiations was held in Kuala Lumpur from 19 to 23 April 2010. Good progress was made across the negotiations to further narrow areas of difference. The round sharpened the understanding on both sides of what would constitute 'AANZFTA-plus' outcomes, and a process for exchanging market access offers ahead of the next round was discussed.

April 2010 update on the Malaysia-Australia Free Trade Agreement negotiations

December 2009 update

The 6th round of Malaysia-Australia Free Trade Agreement (MAFTA) negotiations was held in Canberra from 7–11 December. Negotiations made steady progress across most subject areas. In the area of goods, Malaysia and Australia undertook a stocktake of outstanding issues and next steps to prepare for substantive discussions at the next round.

December 2009 update on the Malaysia-Australia Free Trade Agreement negotiations

August 2009 update

The 5th round of the Malaysia-Australia Free Trade Agreement (MAFTA) negotiations was held from 17-20 August in Kuala Lumpur. This set of meetings marked the first full MAFTA negotiating round since July 2006; negotiations were paused from early-2007 to enable both sides to finalise the ASEAN-Australia-New Zealand FTA (AANZFTA).

August 2009 update on the Malaysia-Australia Free Trade Agreement negotiations

December 2008 update

Australia’s then Minister for Trade, the Hon Simon Crean MP attended the Malaysia-Australia Joint Trade Committee (JTC) meeting in Kuala Lumpur on 7 October 2008, where he and his Malaysian counterpart, Mr Muhyiddin Yassin, agreed to resume negotiations on the Malaysia-Australia Free Trade Agreement (MAFTA). Officials were instructed to hold preparatory talks. Australian and Malaysian officials met in Canberra on 24-25 November. They agreed on a process and work program with a view to resuming formal MAFTA negotiations in 2009.

December 2008 update on the Malaysia-Australia Free Trade Agreement negotiation

October 2007 update

Leads and co-chairs of the various working groups met on 1 October 2007 in Kuala Lumpur to map a way forward for the negotiations. This followed a meeting between Australia’s lead negotiator and Malaysia’s new lead negotiator on 4 June 2007: a number of Malaysia’s key negotiators had changed since the last full negotiating session. Both sides noted the considerable work undertaken in the negotiations with the development of draft chapter text and exchange of initial tariff offers.

October 2007 update on the Malaysia-Australia Free Trade Agreement negotiation

April 2007 update

Departure of key Malaysian negotiating personnel saw the postponement of the scheduled March 2007 negotiating session.

April 2007 update on the Malaysia-Australia Free Trade Agreement negotiation

November 2006 update II

Mr Michael Mugliston, Head Asia Trade Taskforce, Department of Foreign Affairs and Trade, presented at the 8^th Malaysia Australia Joint Business Conference along with his Malaysian counterpart Mohd Zain Mohd Dom, Ministry of International Trade and Industry.

November 2006 update II on the Malaysia-Australia Free Trade Agreement negotiation

November 2006 update

A MAFTA inter-sessional meeting on services was held in Kuala Lumpur from 20 to 22 November 2006. An Australian presentation on a “two annex” negative list approach to scheduling services and investment commitments was well attended with 50 Malaysian officials participating in discussions.  While engaged in the discussions Malaysia continues to prefer a World Trade Organization (WTO) General Agreement on Trade in Services (GATS)-style positive list approach.

November 2006 update on the Malaysia-Australia Free Trade Agreement negotiation

September 2006 update

MAFTA inter-sessional meetings were held in Canberra from 12 to 15 September 2006.  Discussions focused on goods, rules of origin, investment, intellectual property and economic cooperation.  Malaysia provided a senior team of negotiators comprising 25 officials from various Ministries and Departments.

September 2006 update on the Malaysia-Australia Free Trade Agreement negotiation

July 2006 update

Good progress was made in the fourth round of MAFTA negotiations which were held in Kuala Lumpur on 3 to 7 July 2006.  This followed advances made at inter-sessional meetings on investment, telecommunications, e-commerce, financial services and dispute settlement since the last negotiating session held in Canberra in March 2006.

July 2006 update on the Malaysia-Australia Free Trade Agreement negotiation

March 2006 update

Malaysia brought a full team to the 13 to 17 March 2006 MAFTA round held in Canberra, demonstrating their commitment to the negotiations. This enabled wide-ranging discussion on most issues. Both Parties aim to complete negotiations by the end of 2006.

March 2006 update on the Malaysia-Australia Free Trade Agreement negotiation

February 2006 update

We are making steady progress in the negotiations but there was some slippage at the end of last year due to Malaysia’s other negotiating commitments, including the WTO Ministerial meeting and its other FTA negotiations.

February 2006 update on the Malaysia-Australia Free Trade Agreement negotiation

November 2005 update

Australia and Malaysia held meetings on goods and dispute settlement issues in the week of 14 November 2005, after agreeing to postpone the third round of FTA negotiations. The postponement was necessitated by Malaysia's WTO and other FTA commitments (Malaysia is involved in four bilateral and five regional FTA negotiations) which limited its ability to adequately prepare for a full bilateral round with Australia. Both sides agree on the importance of ensuring sufficient preparation for negotiating meetings.

November 2005 update on the Malaysia-Australia Free Trade Agreement negotiation

August 2005 update

The second round of negotiations took place in Kuala Lumpur from 3-5 August. Discussions covered a wide range of issues, including trade in goods, trade in services, investment and a range of trade facilitation issues.  The bulk of these discussions took place in meetings of four Working Groups (on Goods, Services, Investment and Other Issues) which were established at the first negotiating round.  These Working Group sessions brought together relevant experts from both sides, allowing for focused discussions.

August 2005 update on the Malaysia-Australia Free Trade Agreement negotiation

May 2005 update

On 7 April 2005, Australia and Malaysia agreed to launch negotiations on a bilateral Free Trade Agreement (FTA). The first round of negotiations on the FTA was held on 19 and 20 May in Kuala Lumpur. Australia's delegation was led by Mr Michael Mugliston, Head of the Asia Trade Task Force, and the Malaysian side was led by Mohd. Zain Mohd. Dom, Senior Director for Multilateral Trade Policy and Negotiations in the Ministry of International Trade and Industry.

May 2005 update on the Malaysia-Australia Free Trade Agreement negotiation

Submissions

The Department of Foreign Affairs and Trade continues to welcome submissions from individuals or groups on issues relevant to the negotiation of an FTA with Malaysia. In particular, information is sought on specific market access or other issues that affect trade and investment. Stakeholder submissions and comments will inform continued development of the Australian Government's negotiating position and approach to the negotiations. Submissions need not be lengthy, and may build on or refer to earlier submissions.

All submissions will be made publicly available on the DFAT website unless the author specifies that all or part of the submission should not be made available to the public.

Public submissions to the Malaysia-Australia Free Trade Agreement negotiations

Submissions or comments may be submitted by email to malaysia.fta@dfat.gov.au or by post to the following address:

Free Trade Agreement Division
Department of Foreign Affairs & Trade
RG Casey Building
John McEwen Crescent
BARTON ACT 0221

For more information refer to the General guidance on preparing submissions.

For business

For more information on doing business in Malaysia and about specific export opportunities, see the Austrade website. As well as country-specific information, the Austrade website also has a database that can be searched by industry.

Malaysia is a member of ASEAN and party to the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA).

Resources

Australian Scoping Study: An Australia-Malaysia FTA

In July 2004, Australia and Malaysia agreed to conduct parallel scoping studies of a free trade agreement (FTA). These studies were to provide a basis for the two governments to decide whether to proceed to negotiations.

This report is Australia's contribution to the parallel scoping studies. Its main focus is the impact of a free trade agreement on Australia. The study finds solid and worthwhile economic benefits for Australia from entering into a free trade agreement with Malaysia. Malaysia would benefit even more strongly.

• Terms of Reference
• Executive Summary [PDF 348 KB]
• Full Report [PDF 1.8 MB] | [DOC 2.6 MB]
• Measuring the possible impacts of MAFTA - Economic Modelling Report by the Centre for International Economics [PDF 1.0 MB] | [RTF 2.4 MB]
• Public submissions to the Australian Scoping Study

Other resources

• Malaysia: An Economy Transformed, a report by DFAT's Economic Analytical Unit, 2005
• More about Malaysia

Contact us

• Email: malaysia.fta@dfat.gov.au
• Fax: (02) 6261 2187
• Mail:
  Free Trade Agreement Division
  Department of Foreign Affairs and Trade
  RG Casey Building
  John McEwen Crescent
  BARTON ACT 0221

For media enquiries, please call DFAT's Media Liaison Section: (02) 6261 1555.