EFTA and Malaysia conclude negotiations on economic partnership agreement

The agreement will strengthen economic ties and increase trade and investment between the parties. It will give businesses on both sides a competitive advantage by removing tariffs for trade in goods, cutting red tape and securing market access. The agreement covers areas such as trade in goods and services, intellectual property rights, rules of origin, trade facilitation, investment, and cooperation. For the first time with an Asian partner, the agreement contains commitments allowing access to each other’s government procurement markets.

The agreement also contains strong commitments on human rights and on labour and environmental protection, including dedicated provisions on the sustainable production and trade of palm oil and its derivatives.

Negotiations towards a comprehensive economic partnership agreement were launched in November 2012, two years after the signing of a joint declaration on cooperation in Geneva. The first round was held in March 2014, followed by 16 negotiation rounds and a series of expert meetings.

Ove Christian Owe, Specialist Director at the Norwegian Ministry of Trade, Industry and Fisheries, acted as the EFTA spokesperson, while the Malaysian delegation was led by Sumathi Balakrishnan, Senior Director at the Ministry of Investment, Trade and Industry of Malaysia.

A chapter-by-chapter description of the contents of the agreement can be found here.

Economic relations between EFTA and Malaysia

EFTA–Malaysia trade has increased by EUR 500 million since 2019 and reached EUR 2.14 billion in 2024, with imports from Malaysia valued at EUR 1.09 billion and EFTA exports at EUR 1.05 billion. Key EFTA exports in 2024 included machinery, pharmaceuticals, electrical machinery, precision instruments, and clocks and watches, while imports from Malaysia were dominated by electrical machinery, machinery, precision instruments, rubber, and aluminium.

Read more about merchandise trade between EFTA and Malaysia here.