India and Malaysia ratify Free Trade Agreement

Category: WTO Sub-category: Trade Agreements
Document type: news


India and Malaysia have entered into a Free Trade Agreement (FTA) which is expected to boost bilateral trade between the two countries to $15 billion by 2015. Due to come to force on 1st July 2011, the pact was signed between Indian Commerce and Industry Minister, Anand Sharma, and his Malaysian counterpart, Mustapa Mohamed, in Malaysia's administrative capital, Putrajaya.

The new pact covers services, investments, technical barriers to trade, and other areas that were excluded in the existing free trade deal between India and the 10-member Association of Southeast Asian Nations, of which Malaysia is a member.

According to the terms of the agreement, the two countries are to permit up to 100% foreign shareholding in more than 80 sectors, including health-care, telecommunications, retail, and environmental services.

Trade between India and Malaysia totaled $7.3 billion as of 2009. In 2010, India was Malaysia's 10th largest trading partner; according to Malaysian authorities, Indian investments in Malaysia totaled $15.9 million last year.