Malaysia-Australia Free Trade Agreement (MAFTA)

Australia’s Minister for Trade and Competitiveness and Malaysia’s Minister for Trade and Industry, signed the Malaysia-Australia Free Trade Agreement (MAFTA) in Kuala Lumpur on 22 May 2012.

This agreement will further integrate the Australian economy into the Asian region and will build on benefits flowing to the Australian economy from the ASEAN-Australia-New Zealand Free Trade Agreement, which started for Australia and Malaysia in 2010.

Malaysia is Australia’s 10th largest trading partner, with two-way trade worth $16 billion in 2011. The Agreement will open avenues for Australian goods and services into the Malaysian market.

MAFTA will enter into force once Australia and Malaysia have completed their domestic ratification procedures. The earliest the Agreement would take effect is 1 January 2013.

MAFTA Outcomes at a Glance

The Malaysia-Australia Free Trade Agreement will benefit Australian exporters, importers and consumers by opening markets and freeing trade and investment between the two countries. The Agreement builds on the commitments made by both countries in Australia's regional Free Trade Agreement with ASEAN and New Zealand.

For Australian Goods Exporters

Under the Agreement, Malaysia and Australia will cut tariffs earlier and on a wider range of goods. The Agreement will also address other barriers to trade and make administration for traders simpler.

Malaysia will eliminate tariffs on 97.6 per cent of goods imported from Australia from day one, rising to 99 per cent in 2017. Australia will eliminate all tariffs on day one on goods from Malaysia.

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