Key Points
India has begun an exercise to review its trade agreement with Malaysia amid rising trade deficit with the Southeast Asian country and is examining the rules of origin under the pact...
The India-Malaysia Comprehensive Economic Cooperation Agreement was signed in fiscal 2011 when the trade gap was $2.6 billion, which doubled to $5.5 billion in FY24..
The commerce department is also drawing up a list of non-tariff barriers faced by Indian industry while exporting to Malaysia, officials said.. India's major exports to Malaysia are petroleum products, aluminium products, buffalo meat, organic chemicals and electric machinery and equipment, while the key imports are vegetable oils, electrical machinery and equipment, petroleum products, nuclear reactors, boilers, machinery and mechanical appliances, and chemicals..
"We are discussing with exporters if there are any issues with the rules of origin and non-tariff barriers such as sanitary and phytosanitary standards and technical barriers to trade as these impact the trade deficit," said an official.. ..
"Besides balancing the trade, the review will help identify new products and resolve issues in the petrochemicals, plastics and pharmaceutical sectors," said an industry representative...
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