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2011-06-30

India Malaysia CECA

The pact will give new impetus

India Malaysia CECA

India-Malaysia CECA is India's fourth bilateral Comprehensive Economic Cooperation Agreement, after Singapore, South Korea and Japan. The CECA envisages liberalisation of trade in goods, trade in services, investments and other areas of economic cooperation.

According to the statement, the two countries signed the trade pact in February this year. The pact is expected to give a new impetus to bilateral trade and flow of investment.

The agreement envisages liberalisation of trade in goods, trade in services, investments and other areas of economic cooperation.

The trade in goods package takes the tariff liberalisation beyond the India-ASEAN free trade agreement (FTA) commitments, which were implemented by both sides Jan 1, 2010.

Under CECA, the items for which India has obtained market access from Malaysia include basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments, which are all items of considerable export interest to India, the statement said.

"At the same time, adequate protection has been provided by the Indian side for sensitive sectors such as agriculture, fisheries, textiles, chemicals and auto," it said.

In the services sector the two countries have agreed to facilitate temporary movement of business people including contractual service suppliers, and independent professionals in commercially meaningful sectors including accounting, medical, consultancy, architecture, urban planning and engineering.

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