A Free Trade Agreement (FTA) will come into effect between Malaysia and New Zealand on 1 August 2010, complementing the existing Asean-Australia-NZ pact. Negotiated since 2005 and signed in October 2009, the agreement will see tariffs on agricultural and industrial products gradually eliminated until 2016, beginning with under-20% tariffs and ending with higher-taxed trade.

Asean is New Zealand’s third-largest export market and the FTA should produce new investment opportunities. Malaysia’s trade with New Zealand was RM3.5 billion (US$1.1 billion) in 2009. Exports (at RM1.9 billion) were mainly electrical and electronic appliances, chemical, processed food & manufactured metals, while imports from New Zealand (at RM 1.6 billion) consisted mainly of food, paper & pulp and machinery.

source & article: Business Times