India-Malaysia trade pact comes into force today

Written by fe Bureau | New Delhi | Updated: Jul 1 2011, 07:39am hrs
The India-Malaysia Comprehensive Economic Cooperation Agreement (Ceca), which was inked earlier this year, will come into effect on July 1, 2011.

The Ceca envisages liberalisation of trade in goods, trade in services, investments and other areas of economic cooperation, according to a statement from the ministry of external affairs (MEA). Trade between the two countries reached $10 billion in 2010-11, an increase of 26% from the previous year.

The first review of the Ceca will be held within a year of it coming into force. This is Indias fourth Ceca, after Singapore, South Korea and Japan. The trade in goods under the India-Malaysia Ceca takes tariff liberalisation beyond the India-Asean FTA commitments, which was implemented by both countries last January.

Under this Ceca, the items on 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. 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.

According to the statement, under the services agreement of the Ceca, both sides have provided commercially meaningful commitments in sectors and modes of interest to each other which should result in enhanced services trade.

The Ceca will facilitate the temporary movement of business people, including contractual service suppliers, and independent professionals in commercially meaningful sectors including accounting and auditing, architecture, urban planning, engineering services, medical and dental, nursing and pharmacy, computer and related services and management consulting services.

Sectors such as accounting and auditing, architecture, urban planning, engineering services, medical and dental, IT and ITeS, and management consulting services would get Malaysian market access.