MALAYSIA has successfully concluded negotiations for a Free Trade Agreement (FTA) with the European Free Trade Association (EFTA), marking a significant milestone in the country’s international trade agenda.
The agreement, known as the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA), is expected to be formally signed in June 2025, according to the Ministry of Investment, Trade and Industry (MITI).
EFTA comprises four European countries — Iceland, Liechtenstein, Norway, and Switzerland — all of which share a strong commitment to liberalised trade and global economic cooperation.
In a statement released on Friday, MITI outlined the comprehensive scope of the MEEPA, which covers trade in goods and services, investment, intellectual property rights, government procurement, competition policy, customs and trade facilitation, sustainable development, and cooperation and capacity building.
Highlighting the importance of this agreement amid global economic uncertainty, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the FTA offered a welcome degree of predictability for Malaysian exporters.
"Given the current uncertainties surrounding the United States tariffs, Malaysia welcomed the certainties that FTAs such as MEEPA provide," he said.
"Such certainty will support local exporters while strengthening Malaysia’s long-term economic engagement with the EFTA countries. We look forward to increasing trade with these countries, particularly in high-value goods and services," he added.
One of the standout benefits for Malaysia under MEEPA is the achievement of permanent preferential market access for its exporters.
At present, Malaysia enjoys tariff reductions under EFTA’s Generalised System of Preferences (GSP) — a unilateral and temporary arrangement which could be withdrawn when Malaysia graduates from the scheme.
"With MEEPA, this uncertainty is removed as Malaysia has achieved a permanent elimination of import duties in EFTA markets," MITI stated.
Beyond tariff advantages, the agreement also opens the door to deeper collaboration between Malaysia and the highly developed EFTA states, particularly in areas such as research and development, renewable energy, science and technology, and high-precision manufacturing.
MITI said: “Through MEEPA, Malaysia is well-positioned to tap into the EFTA states’ strengths via the Chapter on Cooperation and Capacity Building, which facilitates project-based collaborations through memorandums of understanding.”
The ministry added that this partnership is expected to generate substantial economic growth and innovation opportunities for Malaysia in the years ahead.
"This partnership promises to drive significant growth and create impactful opportunities for Malaysia’s development," the statement read. - April 11, 2025
