The trade agreement between Malaysia and China is a significant development that has been making the headlines in the past year. This agreement, signed in 2020, has been the talk of the town for many reasons. In this article, we will explore the details of the agreement and its impact on both countries.
The agreement
The trade agreement between Malaysia and China is a free trade agreement (FTA). This agreement allows both countries to have easier access to each other`s markets and increase their trade volume. It eliminates tariffs on goods traded between the two countries, makes it easier for businesses to invest, and creates new business opportunities.
The main sectors involved in the agreement are agriculture, manufacturing, and services. The agreement also covers broader issues such as intellectual property rights, e-commerce, and government procurement.
The impact
The trade agreement between Malaysia and China is expected to have a significant impact on both countries. Here are some of the impacts:
1. Increased trade volume – With the elimination of tariffs, the trade volume between the two countries is expected to increase significantly. This will benefit businesses and consumers in both countries.
2. Investment opportunities – The agreement makes it easier for businesses to invest in each other`s countries. This will lead to more job opportunities and economic growth.
3. Access to cheaper goods – The elimination of tariffs will make it easier for Malaysian consumers to access cheaper goods from China. This will benefit consumers and help them save money.
4. Competition – With increased access to each other`s markets, businesses will face more competition. This will help improve the quality of goods and services provided to consumers.
Conclusion
The trade agreement between Malaysia and China is a significant development for both countries. It provides opportunities for businesses to expand and consumers to access cheaper goods. It also strengthens the economic ties between the two countries. While the agreement has its benefits, it is important to ensure that it is implemented in a fair and sustainable manner.
