Eurocham, FMM to form task force to revive EU FTA
KUALA LUMPUR: Eurocham Malaysia and the Federation of Malaysian Manufacturers (FMM) have signed a memorandum of understanding (MoU) to form a joint task force to support the realisation of the Malaysia-European Union (EU) Free Trade Agreement (FTA).
In a joint statement, they said the task force would promote a positive dialogue between the EU and Malaysia, as well as promote two-way trade and investment relations while collaborating on mutually agreed topics and initiatives.
“Negotiations for an FTA between the EU and Malaysia were launched in 2010 but put on hold after seven rounds in 2012,” it said.
FMM president Tan Sri Soh Thian Lai said the task force is expected to facilitate the process of reviving the FTA dialogue with the EU since it represents joint efforts by the private sectors in both Malaysia and the EU to increase trade and investment relations.
“Considering the impact of Covid19, an FTA with the EU would greatly contribute to manufacturers’ postpandemic recovery and re-establishing critical supply chains,” he said.
Eurocham Malaysia chairman Oliver Roche said the joint task force with FMM should be established because both business communities are confident that the FTA is a ‘win-win’.
“Even conservative estimates point out that Malaysia’s economy should benefit in the range of RM10 billion to RM12 billion for trade, while even more significant gains are expected to materialise in the form of foreign direct investment opportunities,” he said.