KUALA LUMPUR – Malaysia has secured a landmark agreement with the European Free Trade Association (EFTA) — comprising Iceland, Liechtenstein, Norway, and Switzerland — that will see the permanent elimination of import duties for Malaysian goods entering these markets. The signing of the Malaysia-European Free Trade Association Economic Partnership Agreement (MEEPA) is scheduled for June 2025.
The Ministry of Investment, Trade and Industry (MITI) confirmed the development on Friday, noting that MEEPA will replace Malaysia’s existing arrangement under EFTA’s Generalised System of Preferences — a temporary scheme that could be withdrawn as Malaysia progresses economically.
MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz praised the agreement for offering much-needed stability and clarity, particularly as Malaysian exporters navigate uncertainty stemming from US-imposed tariffs. On 9 April, the United States implemented a 24% reciprocal tariff on Malaysian imports, which has since been paused for a 90-day period.
“This agreement provides much-needed certainty for our exporters and strengthens Malaysia’s long-term economic ties with EFTA member states,” said Zafrul. “We are especially keen to expand trade in high-value goods and services.”
Negotiations for MEEPA concluded on Friday, covering a comprehensive range of areas including trade in goods and services, investment, intellectual property, competition, government procurement, cooperation, sustainable development, and customs procedures.
In 2024, total bilateral trade between Malaysia and EFTA countries amounted to RM14.4 billion. Malaysia’s key exports to the bloc included electrical and electronic (E&E) products, machinery, scientific instruments, chemicals, and rubber. Imports primarily comprised chemicals, machinery, E&E goods, scientific instruments, and metals.
Beyond tariff-free access, MEEPA also paves the way for enhanced collaboration and knowledge-sharing between Malaysia and EFTA nations. The bloc is globally recognised for its expertise in research and development, particularly in renewable energy, science and technology, and high-precision industries.
According to MITI, the agreement will allow Malaysia to tap into EFTA’s strengths through joint projects and capacity-building initiatives under memoranda of understanding — providing long-term opportunities for economic growth and development.–THE EDGE
