WORLD TRADE  
ORGANIZATION   
WT/REG306/1  
10 September 2012 
 (12-4837) 
Committee on Regional Trade Agreements  
   
 
 
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
New Zealand and Malaysia 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 This report, prepared for the consideration of the Free Trade Agreement between New Zealand and Malaysia has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with th e Parties.  The report has been drawn up 
in accordance with the rules and proce dures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 Any technical questions arising from this report may be addressed to Ms Rohini Acharya (tel: +41 22 739 5974) or Ms Antonia Carzaniga (tel: +41 22 739 5754).  WT/REG306/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
  Page 
I.  TRADE ENVIRONMENT 1  
A.  MERCHANDISE TRADE  1  
B.  TRADE IN SERVICES AND INVESTMENT  3  
1.  Trade in services 3  
2.  Foreign Direct Investment 5  
II.  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 5  
A.  BACKGROUND INFORMATION  5  
III.  PROVISIONS ON TRADE IN GOODS 6  
A.  IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  6  
1.  General provisions 6  
2.  Liberalization of trade and tariff lines 7  
3.  Liberalization schedule 8  
(a)  New Zealand 8  
(b)  Malaysia 9  
4.  Tariff rate quotas 10  
B.  RULES OF ORIGIN  11  
C.  EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  12  
D.  REGULATORY PROVISIONS ON TRADE IN GOODS  12  
1.  Standards 12  
(a)  Sanitary and phytosanitary measures 12  
(b)  Technical barriers to trade 14  
2.  Safeguard mechanisms 15  
(a)  Overview 15  
(b)  Global safeguards 16  
(c)  Bilateral safeguards 16  
(d)  Balance of payments safeguards 17  
3.  Anti-dumping and countervailing measures 17  
4.  Subsidies and State-aid 17  
5.  Customs-related procedures 17  
6.  Other regulations 18  
E.  SECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  18  
IV.  PROVISIONS ON TRADE IN SERVICES 19  
A.  SCOPE AND DEFINITIONS  19  
B.  DENIAL OF BENEFITS  19  
C.  GENERAL PROVISIONS ON TRADE IN SERVICES  20  
1.  Market access 20  
2.  National and MFN treatment 20  
3.  Additional commitments 21  
4.  Commercial presence 21  
5.  Movement of natural persons 21  
D.  LIBERALIZATION COMMITMENTS  22  
1.  New Zealand 23  
(a)  Horizontal co mmitments 23  
(b)  Sector-specific commitments 24  
2.  Malaysia 26  
(a)  Horizontal co mmitments 26  WT/REG306/1 
Page iv  
 
  (b)  Sector-specific commitments 26  
E.  REGULATORY PROVISIONS  29  
1.  Domestic regulation 29  
2.  Recognition 30  
3.  Subsidies 30  
4.  Safeguards 30  
5.  Other 31  
F.  SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  31  
V.  GENERAL PROVISIONS OF THE AGREEMENT 31  
A.  TRANSPARENCY  31  
B.  CURRENT PAYMENTS AND CAPITAL MOVEMENTS  32  
C.  EXCEPTIONS  32  
D.  ACCESSION AND WITHDRAWAL  33  
E.  INSTITUTIONAL FRAMEWORK  33  
F.  DISPUTE SETTLEMENT  33  
G.  RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  37  
H.  GOVERNMENT PROCUREMENT  38  
I.  INTELLECTUAL PROPERTY RIGHTS  38  
J.  OTHER PROVISIONS  39  
1.  Competition policy 39  
2.  Economic Cooperation 39  
3.  Environment 40  
4.  Labour 41  
ANNEX I 43 
ANNEX II 46 
 
  WT/REG306/1 
 Page 1 
 
 
   
 
Key Facts 
 
Parties to the Agreement:  New Zealand and Malaysia 
 Date of Signature:   26 October 2009  
 
Date of Entry into Force:  1 August 2010  
 
Date of Notification:   7 February 2012  
 
Full implementation:   2018  
 
 
 
I. TRADE ENVIRONMENT1 
1. The New Zealand-Malaysia Free Trade Agreemen t is New Zealand's fourth agreement with a 
member of ASEAN and Malaysia's fourth indi vidual agreement without its ASEAN partners.2  With a 
considerably larger population than New Zealand's Malaysia's GDP per capita is considerably lower 
(around US$8,400 in 2010) compared to that of New Zealand ($29,000 in 2010).  While manufactures 
account for the bulk of Malaysia's exports and impor ts (67% and 73.2% respectively), New Zealand's 
major exports are comprised of agricultural produc ts (62.3%) while its imports are dominated by 
manufactures (68.8%).  Malaysia's trade to GDP ratio for 2008-2010 was 177.8 compared to 58.1 
(2007-2009) for New Zealand. 
2. In 2010 around 0.5% of Malaysia's merchandise exports were destined for New Zealand, 
while some 0.4% of its merchandise imports originated  in New Zealand.  Trade with Malaysia is more 
significant for New Zealand whose exports to Mala ysia accounted for 1.8% of total merchandise 
exports while 3.6% of New Zealand's merchandise  imports originate in Malaysia.  New Zealand 
exports around 0.5% of its services to Malaysia and around 0.2% of its imports of services originate in 
Malaysia.3 
A. MERCHANDISE TRADE  
3. For much of the period from 2000 to 2010 New Zealand has had an overall trade deficit both 
globally and with Malaysia;  the deficit with Ma laysia has continued in 2009 and 2010 when the 
overall value of trade between the partners declined considerably after increasing steadily up to 2008.  
Malaysia's global trade surplus has gradua lly increased over the same period of time. 
                                                      
1 Unless otherwise indicated, the data in this s ection are based on the WTO's Trade Profiles and the 
UNSD Comtrade database. 
2 New Zealand's agreements with other ASEAN me mbers are with Singapore, Thailand and the Trans-
Pacific Special Economic Partnership Agreement which includes Brunei Darussalam and Singapore.  Malaysia's 
other agreements which entered into force before its ag reement with New Zealand are with Pakistan, Japan and 
the GSTP.  Since the Agreement with New Zealand was notified, Malaysia has notified an agreement with 
India. 
3 Data on Malaysia's services trade are not available. WT/REG306/1 
Page 2  
 
  0.01.02.03.04.0
010203040
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.1 - New Zealand: Merchandise trade with world and Malaysia, 2000-2010
Imports from Malaysia
Exports to MalaysiaTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
0.00.51.01.52.02.53.0
050100150200250300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010US$billion US$billionChart I.2 - Malaysia: Merchandise trade with world and New Zealand, 2000-2010
Imports from New Zealand
Exports to New ZealandTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
4. Chart I.3 below shows the commodity structure of the Parties' bilateral and global trade 
during the period 2007-2009 by broad HS Section.  Three of Malaysia's four largest global exports 
(machinery, minerals, fats and oils and plasti cs and rubber which accounted for 74.8% of total 
exports), also account for New Zealand's main impor ts from Malaysia (machinery, minerals, plastics 
and rubber accounted for 69.1% of its imports fr om Malaysia);  around 8. 4% of New Zealand's 
imports from Malaysia are prepared foods.  Out of New Zealand's four largest export categories 
(animal products, prepared foods, machinery and base metals which account for 59.9% of global 
exports), Malaysia's main imports from New Zeala nd were animal products and prepared foods which 
accounted for 69.6% of its imports from New Zealand.  WT/REG306/1 
 Page 3 
 
 
  37.5 
8.8 
7.2 6.4 5.6 5.5 5.4 5.4 3.1 3.1 2.4 9.6 
59.0 
10.6 7.3 4.4 4.2 3.8 3.5 2.0 5.2 45.1 
16.3 7.4 6.0 4.6 4.6 2.5 2.4 11.2 
21.6 
16.6 
14.0 9.7 6.1 5.8 4.8 4.4 3.3 3.1 2.6 2.1 5.9 
46.4 
10.2 10.1 6.3 4.7 4.5 3.1 2.7 2.3 2.0 7.7 40.1 
23.5 8.4 5.5 5.2 4.7 3.8 2.7 6.1 Chart I.3
New Zealand and Malaysia: product composition of merchandise trade,  annual average (2007-2009)
New Zealand's imports from Malaysia
Malaysia's imports from New ZealandPer cent
Total:  US$ 976 million
Total:  US$ 575 millionTotal:  US $30 billion
Total: US$ 142 billionTotal:  US$ 177 billion
Total:  US$ 27 billionMalaysia's global exports
New Zealand's global exportsNew Zealand's global imports
Malaysia's global imports
Animal products
Vegetables
Fats and oilsPrepared foods
Minerals
ChemicalsPlastics, rubber
Articles of wood
Wood pulpTextiles
Precious stones
Base metalsMachinery
Vehicles
OpticalOtherMiscellaneous
 
 
 
B. TRADE IN SERVICES AND INVESTMENT  
1. Trade in services 
5. Table I.1A and I.1.B show global and bilateral trade in services and foreign direct investment, 
respectively for New Zealand and Malaysia during 20 07-2009 (three years prior to the entry into force 
of the Agreement).  During this time, New Zealand has run a surplus in its global trade in services 
even though both imports and exports  have declined.  Its principal exports and imports are travel, 
transportation and other business services.   
6. Malaysia's principal exports are construc tion and installation services, computer and 
information services and communication services;  data on transport and travel services are unavailable.  Exports of computer and informat ion services in particular have grown rapidly, 
overtaking construction and installation services.  Its principal imports are construction and 
installation services, royalties and communication services.  Data from Malaysia on bilateral trade 
within the categories of data available shows that its exports to New Zealand are mainly 
communication services, insurance and computer and information services, while imports are dominated by computer and information services and communication services.  Like overall trade, bilateral trade has shown a downward trend especially  since 2008.  There are limited data available 
from New Zealand on bilateral trade in servi ces between the Parties given the commercial 
confidentiality issues attached to the small sample sizes involved. WT/REG306/1 
Page 4  
 
  Table I.1. Trade in commercial services and investment with Malaysia and world, 2007-2009 
A. New Zealand 
Unit: in million US$ 
Service Item World Malaysia 
Exports Imports Exports Imports 
2007 2008 2009 2007 2008 2009 2007 2008 2009 2007 2008 2009 
Total commercial services 9,289 9,060 8,093 8,956 8,878 8,642 - - - - - - 
Transportation 
services 1,968 1,941 1,653 3,025 2,852 2,782 - - - - - - 
Travel 5,439 5,139 4,491 2,902 2,969 2,613 - - - - - - 
Communication services 165 202 198 223 201 208 - C C - C C 
Construction 7 8 14 115 98 101 - - - - - - 
Insurance services      29 31 31 231 224 207 - - - - - - 
Financial services 84 78 81 93 120 85 - C C - C C 
Computer and information services 215 207 211 297 299 302 - 1.4 1.3 - C C 
Royalties and licence 
fees 135 148 156 577 571 521 - C 1.3 - C C 
Other business 
services 960 919 871 1,351 1,394 1,661 - 10.5 8.8 - 4.2 7.5 
Personal, cultural 
and recreation 
services 176 267 272 47 53 61 - C C - C C 
 World Malaysia 
 Outward Inward Outward Inward 
 2007 2008 2009 2007 2008 2009 2007 2008 2009 2007 2008 2009 
Total FDI stocks 15,104 15,955 15,593 63,027 62,028 56,994 34.5 C C C C C 
Total FDI flows 1,728 3,758 -640 6,307 2,563 2,900 C C C 7.3 29.5 38.1 
 
 
Table I.1. Trade in commercial services and investment with New Zealand and world, 2007-2009  
B. Malaysia 
Unit: in million US$ 
Service Item World New Zealand 
Exports Imports Exports Imports 
2007 2008 2009 2007 2008 2009 2007 2008 2009 2007 2008 2009 
Total commercial 
services 25,867  27,091  21,255 30,332 31,689 24,740 - - - - - - 
Transportation 
services - - - - - - - - - - - - 
Travel - - - - - - - - - - - - 
Communication services 611 598 553 856 810 771 3.1 3.3 2.0 2.0 1.7 0.3 
Construction and 
installation 1,357 1,286 903 1,691 1,421 1,033 0.3 0.2 0.2 1.4 0.3 0.1 
Insurance services    325 306 306 638 629 648 0.5 1.2 0.5 0.2 0.0 0.3 
Financial services 88 86 87 203 301 305 0.0 0.5 0.1 0.0 1.3 1.0 
Computer and information 
services 847 1,296 1,452 645 1,119 1,204 0.8 0.8 1.4 1.8 3.7 2.4 
Royalties and 
licence fees 37 197 266 1,183 1,294 1,131 0.0 0.0 0.0 0.2 0.7 0.4 
Other business services - - - - - - - - - - - - 
Personal, cultural 
and recreation 
services 86 92 102 382 473 408 0.0 0.6 0.4 0.3 3.5 1.7 
 World New Zealand 
 Outward Inward Outward Inward 
 2007 2008 2009 2007 2008 2009 2007 2008 2009 2007 2008 2009 
Total FDI stocks 58,436 66,926 79,579 75,763 73,601 78,895 - - - - - - 
Total FDI flows 11,314 14,965 7,930 8,595 7,172 1,430 - - - - - - 
C Data are confidential  
Note: Exchange rates used for converting from New Z ealand dollar  to US dollar were:  1.36  (2007), 1.42  (2008) and 1.6 (2009); and 
for converting Malaysian Ringgit to US dollar were: 3.44  (2007), 3.34  (2008) and 3.53 (2009). 
 
Source : New Zealand and Malaysian authorities; UnctadStat (Malaysian FDI data).  WT/REG306/1 
 Page 5 
 
 
  2. Foreign Direct Investment 
7. Data on foreign direct investment (FDI) is also shown in Table I.1A and I.1B for both Parties.  
Both Parties are net recipients of FDI although Ma laysia's outward investment has been strong and 
overtook inward investment in 2009.  New Zeala nd's inward FDI stock declined in both 2008 and 
2009 while outward FDI fell in 2009 as a result of which the net inward FDI stoc k has also declined.  
Data on bilateral investment are not available or are subject to confidentiality constraints. 
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
8. The Agreement was signed by the Parties on 26 October 2009 and entered into force on 
1 August 2010.  The goods and services aspects of the Agreement were notified to the WTO by the 
Parties on 7 February 2012 under Article XXIV:7( a) of the GATT 1994 and Article V:7(a) of the 
GATS, respectively (document WT/REG306/N/1 and S/C/N/615).  The text of the Agreement is available, together with its related A nnexes, on the following official websites: 
 
New Zealand:  
"http://www.mfat.gov.nz/Trade-and-Economic-R elations/2-Trade-Relationships-and-
Agreements/Malaysia/index.php-text " 
 
Malaysia: 
"http://www.miti.gov.my/cms/content.jsp?id=com.t ms.cms.section.Section_55b8f6ae-c0a8156f-
2af82af8-4fed08f4"  
9. The Agreement is composed of 18 Chapters and ei ght annexes which form an integral part of 
the Agreement as follows: 
Box II.1:  Structure of the Agreement  
Preamble  
Chapter 1 Initial provisions 
Chapter 2 Trade in goods 
Chapter 3 Rules of origin 
Chapter 4 Customs procedures and co-operation 
Chapter 5 Trade remedies 
Chapter 6 Sanitary and phytosanitary measures 
 Implementing Arrangement:  competent authorities and contact points 
Chapter 7 Technical barriers to trade 
Chapter 8 Trade in services 
Chapter 9 Movement of natural persons 
Chapter 10 Investment 
Chapter 11 Intellectual property 
Chapter 12 Competition 
Chapter 13 Economic co-operation 
Chapter 14 Transparency 
Chapter 15 Institutional provisions 
Chapter 16 Dispute settlement 
Chapter 17 General exceptions 
Chapter 18 Final provisions 
 
Annex 1 Schedules of  tariff commitments 
Annex 2 Product specific rules 
 Appendix on the indicative list of  textile finishing processes WT/REG306/1 
Page 6  
 
  Annex 3 Procedures and verification 
 Appendix on certificate of origin 
Annex 4 Schedules of specif ic services commitments 
Annex 5 Most favoured nation treatment sectoral coverage under Article 8.8 
Annex 6 Schedules of movement of natural persons commitments 
Annex 7 Expropriation 
Annex 8 Areas of co-operation 
 New Zealand-Malaysia Agreemen t on Environmental Co-operation 
 New Zealand-Malaysia Agreement on Labour Co-operation 
Side Letters Alc oholic Beverages 
 MNZFTA/AANZFTA Relationship 
Source:  The Agreement. 
 
10. Other instruments that were agreed between the Parties are agreements on the Environment 
and Labour, and side letters on th e relationship between the Agr eement and the ASEAN-Australia-
New Zealand Agreement to which both are party, and on alcoholic beverage s.  The Malaysia-New 
Zealand Agreements on Labour Co-operation and Environmental Co-operation are treaty level 
instruments concluded in conjunction with the Ag reement and linked through the Preamble of the 
Agreement.  The exchange of letters on alcoho lic beverages (under HS 2203-2208) constitutes an 
integral part of the Agreement. 
11. The objectives of the Agreement are to strengthe n bilateral trade and economic partnerships, 
liberalize trade in goods and services and establish a framework conducive to investment, to establish 
a framework to enhance socio-economic co-opera tion through information skills and technology 
exchange as agreed by the Agreement, to improve the efficiency and competitiveness of their goods 
and services sectors by promoting conditions fo r competition co-operation, innovation and for 
mutually beneficial business collaboration and to facilitate trade and investment by establishing 
transparent rules and seeking to minimize transact ion costs.  Although no explicit implementation 
period is stated, tariff elimination under the Agreement is to be completed in seven years by 1 January 
2016.  Services commitments are to be implemen ted upon entry into force of the Agreement.    
III. PROVISIONS ON TRADE IN GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
12. Under Chapter 2 of the Agreement which deals with trade in goods, the Parties agree to 
provide national treatment to each others' goods in  accordance with Article III of GATT 1994 which, 
along with its interpretative notes is incorporated into and made part of the Agreement mutatis mutandis.   
13. With regard to customs duties, the Parties agr ee to eliminate tariffs on each others' originating 
goods as agreed and subject to their respective tariff schedules in Annex I of the Agreement 
(Article 2.3).  In addition to the duty elimination ag reed under the Agreement, th e Parties agree that at 
the request of either Party, they will promptly c onsult to consider accelerating the elimination of 
customs duties on originating goods set out in the tariff schedule in Annex I.  Any such agreement 
will enter into force once the Parties have excha nged written notification on completion of internal 
legal procedures and on dates agreed between them.  Unilateral acceleration of tariff elimination of 
goods in Annex I is also permitted and the Party ta king the decision to do so should inform the other 
Party before the new tariff rates take effect or as early as practicable (Article 2.4). 
14. Under a Side Letter on Alcoholic beverages th e Parties agreed that items covered under 
HS headings 2203, 2204, 2205, 2206, 2207 and 2208 ma y be subject to review two years after the  WT/REG306/1 
 Page 7 
 
 
  entry into force of the Agreement.  However, Ma laysia will at all times reserve its rights to the 
imposition of tariffs on these products.  There are currently 34 tariff lines (at the HS-8 digit level) included under these headings in the Malaysian tari ff, all of which are subject to specific duties. 
15. In addition to elimination of duties, the Par ties, in accordance with Article VIII.1 of GATT 
1994, shall ensure that all other fees and charges (excep t charges equivalent to an internal tax or other 
internal charge applied consistently with Article III.2 of GATT 1994, and anti-dumping and 
countervailing duties), imposed on or in connecti on with imports are limited in amount to the 
approximate cost of services rendered and do not repr esent an indirect protection to domestic goods or 
a taxation on imports for fiscal purposes.  To this eff ect, the Parties shall make available in print form 
or electronically, a current list of fees and charges imposed in connection with imports. 
16. If a Party believes that any proposed or actual measure might materially affect trade in goods 
between the Parties, it should promptly notify the othe r Party.  Upon request from the other Party, the 
Party shall provide information and respond to questi ons relating to any (or proposed) measure within 
30 days of request, whether or not that other Party has been previously notified of the measure.  In addition, technical discussions may also be requested between the Parties on any matter affecting 
trade in goods between the Parties to be held with in 30 days of the request unless otherwise mutually 
agreed.
4 
17. Article 2.7 forbids the use of non-tariff measur es on imports of any good of the other Party, 
except in accordance with the Party's rights and obligations under the WTO Agreement or in 
accordance with the Agreement.  All automatic and non-automatic import licensing measures are to 
be implemented in a manner that is transparen t and predictable and in accordance with the WTO 
Agreement on Import Licensing Procedures.  Each Pa rty shall promptly notify the other of existing 
import licensing procedures and of any new impor t licensing procedures and any modification to 
existing import licensing procedures, to the extent possible 60 days before it takes effect but in any case not later than 60 days following publication.  Th e information in the notification is to be in 
accordance with Articles 5.2 and 5.3 of the WTO Agreement on Import Licensing Procedures.  Each 
Party is required by the Agreement to respond w ithin 60 days to all reasonable enquiries from the 
other Party on the criteria used by its respective licensing authorities in granting or denying import 
licences (Article 2.8).  
18. A Committee on Trade in Goods is established unde r Article 2.10 whose role is to consider 
any matters relating to the implementation of Chap ters 2 and Chapter 3 (rules of origin) (See section 
below on institutional framework). 
2. Liberalization of trade and tariff lines 
19. Overall tariff elimination is shown in Tabl es III.1A and B for New Zealand and Malaysia 
respectively.  In 2010 when the Agreement entere d into force almost 60% of New Zealand's tariff 
(4,344 tariff lines) were duty free on an MFN basis, corresponding to 80.4% of New Zealand's average imports from Malaysia during 2007-2009.  As a result of the entry into force of the 
Agreement, an additional 25% of the tariff was lib eralized for imports from Malaysia accounting for 
9.2% of New Zealand's imports from Malaysia.  Furt her liberalization is due to take place annually 
between 2012 and 2016.  At the end of implemen tation in 2016, 100% of New Zealand's tariff will 
have been liberalized for imports from Malaysia. 
                                                      
4 This Article is without prejudice to the Parties' rights and obligations regarding the Agreement's 
dispute settlement procedures and does not preclude that a proposed or actual measure may be more 
appropriately dealt with under the Agreement's procedures concerning sanitary and phytosanitary measures 
(Chapter 6) or technical barriers to trade (Chapter 7). WT/REG306/1 
Page 8  
 
  Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. New Zealand 
Duty phase-out 
period Number of lines % of total lines in New 
Zealand's tariff 
schedule Value of New Zealand's 
imports from Malaysia 
(2007-2009) in million US$ % of New Zealand's 
total imports from 
Malaysia 
2007-2009 
MFN duty free 
(2010) 4,344 59.6 771.0 80.4 
2010 1,824 25.0 87.9 9.2 
2012 405 5.6 41.3 4.3 
2013 22 0.3 2.2 0.2 
2014 6 0.1 1.7 0.2 
2015 636 8.7 38.4 4.0 
2016 51 0.7 16.3 1.7 
Total 7,288 100.00 958.7 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data provi ded by New Zealand and WTO-IDB. 
 
20. Table III.1B shows that in 2010 63.8% of Malays ia's tariff (6,625 lines) were duty free on an 
MFN basis corresponding to 92.4% of Malaysia's imports from New Zealand during 2007-2009.  A 
further 3.8% of the tariff was liberalized upon entr y into force of the Agreement in 2010 for imports 
from New Zealand, corresponding to 2% of Malaysia 's imports from New Zeal and.  Further tariff 
liberalization is due to take place annually up to 2013 and in 2016, with the bulk of lines (1,480) 
liberalized in 2012.  As a result, 99% of the tariff will be liberalized for imports from New Zealand.  
At the end of implementation in 2016, 101 tariff lin es are to remain dutiable, corresponding to 0.7% 
of Malaysia's imports in 2007-09 from New Zealand. 
Table III.1 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Malaysia 
Duty phase-out 
period Number of lines % of total lines in 
Malaysia's tariff 
schedule Value of Malaysia imports 
from New Zealand 
(2007-2009) in million US$ % of Malaysia's total 
imports from New 
Zealand 
2007-2009 
MFN duty free 
(2010) 6,625 63.8 525.9 92.4 
2010 393 3.8 11.3 2.0 
2011 576 5.5 11.1 2.0 
2012 1,480 14.2 10.5 1.8 
2013 626 6.0 1.2 0.2 
2016 589 5.7 4.9 0.9 
Remain dutiable 101 1.0 4.1 0.7 
Total 10,390 100.00 569.0 100.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source :  WTO estimates based on data pr ovided by Malaysia and WTO-IDB. 
 
3. Liberalization schedule 
(a) New Zealand 
21. Further details of tariff liberalization by Ne w Zealand are shown in Table III.2.  Around 25% 
of the tariff was liberalized for imports from Mala ysia in 2010;  the liberalization concerned all 
HS Sections where tariffs are applied.  An additi onal 405 and 636 lines are to be liberalized in 2012 
and 2015.  All tariffs will be eliminated by 2016.  WT/REG306/1 
 Page 9 
 
 
  Table III.2 
New Zealand:  Tariff elimination u nder the Agreement, by HS section 
HS section  MFN 
average.
% Total 
No. of 
lines  MFN duty-free 
(2010)  Number of duty-free lines under the Agreement 
2010 2012 2013 2014 2015 2016 
I 0.8 251 209 42      
II 1.1 300 234 64 1   1  
III 0.9 58 47 8    2 1 
IV 2.5 482 238 230 5   9  
V 0.3 189 178 11      
VI 0.7 951 824 107 4 1 1 14  
VII 2.9 389 172 168 23 1  25  
VIII 2.5 102 54 31 3 1  13  
IX 2.5 205 102 50 32 5   16 
X 0.0 228 228       
XI 4.1 1,059 491 24 71   473  
XII 5.7 106 38 9    59  
XIII 2.2 226 128 76 11 3  8  
XIV 1.2 68 52 12 1   3  
XV 2.4 802 417 177 170 4 5 4 25 
XVI 2.6 1,178 562 552 44   20  
XVII 3.3 233 103 113 15 1  1  
XVIII 0.9 240 190 42 8     
XIX 1.8 35 21 12 2     
XX 3.6 179 49 96 15 6  4 9 
XXI 0.0 7 7       
Total 2.3 7,288 4,344 1,824 405 22 6 636 51 
 
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by New Zealand. 
(b) Malaysia 
22. Further details of tariff liberalization by Ma laysia are shown in Table III.3 and Chart III.1 
below.  Tariff liberalization is spread out annually between 2010 and 2013, followed by the 
liberalization of tariffs on 589 lines in 2016.  The ta riffs that will continue to  be applied to imports 
from New Zealand after implementati on is complete are found in HS Sections IV, XIX, I and II.  
Average tariffs on these dutiable lines range from 5%  to 36.9%.  Chart III.1 shows that for some 
HS Chapters, namely 4, 2 and 1, the average prefer ential tariff is lower than the MFN average, 14.3% 
compared to the MFN average of 50% for Chapter 4, 22% compared to 44% for Chapter 2, and 15% 
compared to 20% for Chapter 1.  The average pr eferential and average MFN rates are identical in 
Chapters 10, 24 and 93, implying no liberalization, while Chapter 22 has specific rates of duty for 
which no ad valorem  equivalents are available. 
Table III.3 
Malaysia:  Tariff elimination under the Agreement, by HS section 
HS 
section  MFN 
average
% Total 
No. of 
lines  MFN duty-
free (2010)  Number of duty-free lines
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010 2011 2012 2013 2016 
I 2.7 325 280 4 23 2   16 16.9 
II 2.7 354 262 46 9 7  22 8 36.9 
III 2.5 166 98 54 11 2  1   
IV 2.6 462 309 17 41 42   53 5.0 
V 1.4 203 178 14 3 4  4   
VI 1.9 1,083 941 27 9 71 1 34   
VII 13.2 655 199 78 7 221 127 23   
VIII 0.3 99 96  3 24  1   
IX 1.4 2,024 1,880 25 2 75 6 36   
X 10.4 334 124 14 63 96 25 12   
XI 7.7 1,075 476  311 504 2 1   
Table III.3 (Cont'd) WT/REG306/1 
Page 10  
 
  HS 
section  MFN 
average
% Total 
No. of 
lines  MFN duty-
free (2010)  Number of duty-free lines
No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2010 2011 2012 2013 2016 
XII 6.6 84 51  6 24 20 2   
XIII 18.2 204 49 14 5 39 35 62   
XIV 0.4 62 58  11 1     
XV 11.3 1,020 299 143 42 140 192 204   
XVI 5.4 1,257 859 116 17 141 32 92   
XVII 17.7 463 112 70 4 28 155 94   
XVIII 0.8 266 247 12 1 3 3    
XIX 14.2 26 2      24 15.4 
XX 9.1 218 99 26 8 56 28 1   
XXI 2.0 10 6 4       
Total 6.0 10,390 6,625 664 576 1,480 626 589 101 16.0 
 
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Malaysia.  
0204060
01 02 04 10 22 24 93
HS ChapterMFN PreferentialChart III.1
Malaysia: Average of dutiable rates, by HS Chapter
Average rate of duty (%)  
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations; for the calcu lation of  
averages, specific rates are excluded and the ad valorem parts of alternate rates are included.
For HS Chapter 22 the preferential tariff only contains specific duty.
Source :  WTO Secretariat estimates based on data provided by Malaysia.  
4. Tariff rate quotas 
23. Under the Agreement Malaysia maintains tari ff rate quotas (TRQs) on milk, eggs, live pigs 
and meat, and chicken.  TRQ quantities under which imports are charged zero rates of duty are to 
continue to grow annually for milk at a rate of 3% (for HS lines 0401.10.110 and 0401.30.110) and at a rate of 5% (for HS 0401.20.110) in perpetuity, while  for hens eggs the growth rate is 3% annually.  
Annex II below shows the in and out of quota rates for all products subject to TRQs.  New Zealand 
does not maintain TRQs under the Agreement.  WT/REG306/1 
 Page 11 
 
 
  B. RULES OF ORIGIN  
24. Rules of origin are covered by Chapter 3 of the Agreement and Annex 2 while customs 
procedures and valuation are covered by Chapter 4.  Under Article 3.2 goods imported by a Party are 
deemed to be originating goods if they are goods which:  
(a) are wholly obtained or produced as defined in Article 3.3;   
(b) produced entirely in the territory of on e or both of the Parties exclusively from 
originating materials from one or both Parties;  or  
(c) produced in the Parties from non-originati ng materials provided such goods meet the 
product specific rules in Annex 2.   
25. Annex 2 requires goods produced from non-originat ing materials to undergo either a change 
in tariff classification either at the Chapter, Headi ng or sub-heading levels (respectively HS 2, 4 or 6 
digit levels) or a qualifying value content (QVC) (g enerally of not less than 40%) as defined in 
Article 3.4 of the Agreement where the value of th e non-originating materials is measured either as 
the CIF value at the time of import or the earliest ascertained price paid or payable for non-originating 
materials, including materials of undetermined origin  in the territory of the Party where the working 
or processing takes place.  In cases where a tariff h eading or sub-heading is subject to alternative 
product specific rules, it is sufficient to comply with one of the rules. 
26. Article 3.5 permits cumulation between the Parties while a de minimis  rule in Article 3.7 
permits goods which do not satisfy a CTC required by the product specific rules to be originating if 
the value of non-originating materials used in the production of those goods (that do not meet the 
CTC requirement) do not exceed 10% of the FOB valu e of the good.  In Chapters 50-63 (textiles and 
clothing) goods that do not satisfy the CTC require ment of Annex 2 may nonetheless be considered 
originating if the weight of all non-originating ma terials used in their pr oduction does not exceed 10% 
of the total weight of the goods.  Minimal operations  and processing do not confer origin (Article 3.6). 
27. To retain their originating status, goods must be transported to the importing Party directly, 
without passing through a non-party;  or if transiti ng through a non-party, the goods have not entered 
the commerce of that non-party, undergone subse quent production or any other operation outside the 
territories of the Parties other than unloading, reload ing, storing or any othe r operations necessary to 
preserve them in good condition or to transport them to  the other Party and the transit entry is justified 
for geographical, economic or logistical reasons (Ar ticle 3.8).  Articles 3.9- 3.11 relate to packaging 
materials and containers for retail sale, packing ma terials and containers for shipment and accessories, 
spare parts, tools or instructional and information ma terials, which are not to be taken into account in 
determining origin (except for packing materials and containers for retail sale used in goods subject to 
a QVC requirement).  Indirect materials are considered originating materials (Article 3.12) and Generally Accepted Accounting Principles of stock c ontrol or inventory management applicable in 
the exporting Party are to be used in determini ng the origin of mixed or physically combined 
originating and non-originati ng materials (Article 3.13). 
28. Finally, all claims for preferential treatment mu st be supported by a Declaration or Certificate 
of Origin as detailed in Annex 3 on procedures and verification.  The Customs Administration of the 
importing Party may deny preferential treatment if the good does not qualify as originating or if the 
importer, exporter or producer fails to comply with any of the relevant requirements of Chapter 3.   
29. There is no prohibition of duty drawback in  the Agreement.  Commercial and private 
exporters may claim drawback in accordance with relevant domestic customs policy.  WT/REG306/1 
Page 12  
 
  C. E
XPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
30. In accordance with GATT Article VIII.1, the Pa rties shall ensure that all fees and charges 
(except customs duties, charges equivalent to an internal tax or other internal charge applied 
consistently with Article III. 2 of GATT 1994, and anti-dumping a nd countervailing duties), imposed 
on or in connection with exports are limited in amount to the approximate cost of services rendered 
and do not represent an indirect protection to domestic goods or a taxation on exports for fiscal 
purposes.  To this effect, the Parties shall make avai lable in print form or electronically, a current list 
of fees and charges imposed in connection with exports (Article 2.5). 
31. Under Article 2.7 non-tariff measures on the export  of any good destined for the territory of 
the other Party, are forbidden, except in accordance with the Party' s rights and obligations under the 
WTO Agreement or in accord ance with the Agreement. 
D. REGULATORY PROVISION S ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
32. The Parties under Article 6.4 reaffirm their ex isting rights and obligations towards each other 
under the SPS Agreement.  Furthermore, nothing in Chapter 6, on sanitary and phytosanitary (SPS) 
measures or any Implementing Arrangements unde r the Agreement will limit these rights and 
obligations. 
33. The objectives of the Agreement are to uphold and enhance implementation of the WTO SPS 
Agreement and applicable international standards;  establish a mechanism to facilitate trade between 
the Parties while protecting human, animals or plant life in their territories, including through possible 
development of implementing arra ngements on matters of mutual in terest;  provide a means to 
improve communication, consultation and co-ope ration between the Parties on SPS issues;  and 
strengthen collaboration between the Parties in releva nt international bodies that develop international 
standards, guidelines and recommendations relevant to  the matters covered by Chapter 6 whose scope 
covers all SPS measures of a Party that may direct ly or indirectly affect trade between them. 
34. For effective implementation, the Parti es will promote communication between their 
competent authorities who are the Departments of Ag riculture, Fisheries, Veterinary services of the 
Ministry of Agriculture and the Agro-Based Industr y and Food Safety and Quality Division of the 
Ministry of Health for Malaysia and the Office of the Competent Authority of the Ministry of Primary 
Industry (MPI) of New Zealand.5  Their role is to provide, wher e requested by a Party, or where 
appropriate in the circumstances, relevant inform ation to the implementation of Chapter 6.  The 
Parties are to notify each other of any changes to the competent authorities or contact points and of 
any significant changes in the structure, organiza tion and division of responsibility within their 
competent authorities or contact points (Article 6.5 and the Implementing Arrangement to Chapter 6).  
A Committee on SPS is also to be established and to meet within one year of the entry into force of the Agreement and annually thereafter or as mutua lly determined by the Parties (Article 6.6). 
                                                      
5 From 30 April 2012, the Ministry of Agriculture and Forestry (MAF) of New Zealand changed its 
name to reflect its merger with the New Zealand Food Safety Authority (NZFSA) and Ministry of Fisheries.  
The new Ministry of Primary Industries (MPI) will implem ent all legislation and bilateral agreements previously 
administered by the MAF including in relation to horticu lture, agriculture, aquaculture, fisheries, forestry and 
food sectors and the protection of primary industries fro m biological risk.  MPI is in contact with trading 
partners with respect to the implementation of changes relating to brands, official seals and logos etc. used on 
official certificates.  The process is expected to run through until mid-2013.  WT/REG306/1 
 Page 13 
 
 
  35. The Parties may also adopt through the Comm ittee, Implementing Arrangements to further 
facilitate their mutual trade or to achieve other mutually agreed objectives on SPS measures.  Such 
Implementing Arrangements may set out understandings  reached on matters of mutual interest, 
including competent authorities, contact points, equivalence, regionalisation, certification, and 
verification as provided for in the Agreement.  Wh ere such Arrangements have been adopted they 
shall be applied to trade between the Parties.  Where conditions for trade are not set out in an 
Implementing Arrangement, trade shall take plac e under the conditions required by the importing 
Party to meet its appropriate level of SPS protectio n.  The Parties will take the necessary action to 
implement the understanding reached in an Implemen ting Arrangement within three months of its 
adoption by the Committee or as otherwise mutually  determined by the Parties (Article 6.7).  
According to the Parties no additional Implementin g Arrangements have been developed or adopted 
to date although details of contact points and comp etent authorities have been exchanged on matters 
relating to the Chapter. 
36. The Agreement follows the WTO SPS Agreement on the principle of equivalence as in 
Article 4 and the concept of regionalization, zoni ng and compartmentalization as in Article 6 and as 
elaborated in OIE and IPPC standards.  Equivalence may be recognized by the Parties in relation to an 
individual measure and/or a group of measures and/or systems applicable to a sector or part of a 
sector.  In addition to recording any determinations  of equivalence, the Parties may also mutually 
decide to record any principles and procedures app licable to determination of equivalence, in an 
Implementing Arrangement (Article 6.8).  With regard to regionalization, within the overall 
framework set by the WTO SPS Agr eement and OIE and IPPC standards, the Parties may mutually 
recognize regionalization, zoning and compartmenta lization at various levels, including farms and 
processing establishments as having appropriate bio security measures as mutually agreed.  Any 
mutually decided principles, procedures and/or cer tification provisions on regionalization decisions 
and any agreed determination on commodities or situ ations where regionalization decisions are, or 
will be, accepted, are to be recorded in an Impl ementing Arrangement (Article 6.9).  The Parties 
indicate that an implementing arrangement recordi ng mutually decided principles, procedures and/or 
certification provisions on equivalence or regionaliza tion has not yet been developed or agreed.  The 
principles contained in the SPS Chapter of the Agr eement are however being referred to and applied 
by the Parties to their routine regulatory interaction. 
37. Verification and audit of the exporting Party' s regulatory control system is permitted under 
Article 6.10.  Audit procedures are to be risk-based  and reflect performance, and may include reviews 
of the exporting Party's central or regional controls, onsite visits to a sample of establishments and/or 
checks of a proportion of imports from the exporting Party.  Any principles and guidelines that are 
agreed between the Parties on audit procedures shall be recorded in an Implementing Arrangement.  
According to the Parties such an implementing arra ngement has not yet been developed or agreed.  
The principles contained in the SPS Chapter of the Agreement are however being referred to and 
applied by the Parties in their routine regulator y interactions involving verification and audit 
procedures. 
38. Any significant food safety issues or change in anim al or plant health or pest status relevant to 
existing trade are to be notified to each other in a timely and appropriate manner, in writing through 
their contact points.  In addition, any provisiona l measures necessary for the protection of human, 
animal or plant life or health should be notified within 24 hours to the other Party and on request 
consultations regarding the situa tion shall be held within 14 days, unless otherwise agreed between 
the Parties.  The Parties are to take due acc ount of any information provided through such 
consultations.  Notification is also required by the importing Party to the exporting Party of the details 
of any consignment that does not comply with the requirements under the relevant international 
guidelines for products subject to SPS measures.  Unl ess specifically required by its laws, regulations 
or policies, the importing Party shall avoid suspen ding trade based on one consignment, and in the 
first instance, contact the exporting Party to determ ine the reason for the problem.  The Parties shall WT/REG306/1 
Page 14  
 
  consult to determine appropriate remedial action and to ensure that the problem does not recur 
(Article 6.13).  Consultations ma y also be requested to discuss SPS measures affecting trade between 
the Parties.  The other Party shall respond prompt ly to any requests for such explanations and 
consultations shall be held as soon as practicable (A rticle 6.14).  Finally, Article 6.15 commits the 
Parties to exploring opportunities for further co- operation, collaboration and information exchange on 
SPS measures of mutual interest consistent with  the provisions of Chapter 6 such as technical 
assistance, capacity building and facilitation of market access for products of interest. 
(b) Technical barriers to trade 
39. Under Article 7.3 of the Agreement, the Parti es affirm their existing rights and obligations 
with respect to each other under the WTO Agreement on Technical Barriers to Trade (TBT).  Chapter 
7 of the Agreement covers all standards, technical  regulations and conform ity assessment procedures 
that may affect trade in goods between the Par ties, except for purchasing specifications prepared by 
government entities for their production or consum ption requirements and to SPS measures (covered 
by Chapter 6 of the Agreement).  In addition, th e Chapter does not prevent a Party from adopting or 
maintaining in accordance with its rights and ob ligations under the WTO TBT Agreement, technical 
regulations or standards necessary to fulfil a le gitimate objective taking into account the risks non-
fulfilment would create.  Legitimate objectives in th is case could include to ensure national security 
requirements, the prevention of deceptive practices, th e protection of human health or safety, animal 
or plant life or health, or the environment (Article 7.4). 
40. The objectives of the Chapter are to increase and facilitate trade through furthering the 
implementation of the WTO TBT Agreement and bu ilding on the work of APEC on standards and 
conformance;  promote regulatory co-operation to manage risks to health, safety and the environment 
to support trade facilitation;  reduce, where possi ble, unnecessary transaction costs associated with 
trade and eliminate unnecessary technical barriers to trade in goods between the Parties;  promote 
mutual understanding of each others' standards, t echnical regulations and conformity assessment 
procedures as well as strengthen information exchan ge in relation to their preparation adoption and 
application;  strengthen co-operati on between the Parties in the work of international bodies related to 
standardization and conformity assessment;  an d provide a framework to implement supporting 
mechanisms to realize these objectives (Article 7.2). 
41. The Parties agree to use international standards or their relevant parts, as a basis for their 
technical regulations and related conformity asse ssment procedures where relevant international 
standards exist, or their completion is imminent, ex cept where these standards or their relevant parts 
are ineffective or inappropriate to fulfil le gitimate regulatory objectives (Article 7.5). 
42. To facilitate their mutual trade, the Parties sh all seek to ensure that conformity assessment 
procedures applied between them are no more rest rictive than necessary to provide the importing 
Party with confidence that products conform to th e applicable technical regulations, taking into 
account the risk that non-conformity would create.  They will seek to increase efficiency, avoid 
duplication and ensure cost effectiveness thr ough a range of measures including promoting 
recognition of co-operation arrangements between each others' accreditation agencies;  unilateral 
recognition and mutual recognition of conformity  assessment results and procedures in the other 
Party;  recognizing accreditation procedures for qualifying conformity assessment bodies and government designation of conformity assessment bodi es (Article 7.6).  Consultations on matters 
relating to technical competence of conformity assessment bodies is permitte d and a Party shall, on 
the request of the other Party, explain its reas ons for not accepting the result of any conformity 
assessment procedure in the other Party. 
43. Accreditation or recognition of conformity assessment bodies may take place.  The terms of 
such accreditation or recognition shall be no less favourable than those accorded to accreditation  WT/REG306/1 
 Page 15 
 
 
  bodies based in the territory of the relevant Party.  If a Party accredits or otherwise recognizes a 
conformity assessment body with a technical regulati on or standard and it refuses to do the same for 
the other Party, it shall, on request, give the reasons for its refusal.  Where a Party refuses to enter into 
negotiations on facilitation recognition of the resu lts of conformity assessment procedures conducted 
by the bodies of the other Party, it shall, on request, explain its reasons. 
44. As under the WTO TBT Agreement, positive consid eration shall be given by the Parties to 
accepting as equivalent each others' technical regulati ons even where differences exist, provided that 
the technical regulations produce outcomes that are equivalent to those produced by the Party's own technical regulations.  A Party shall, upon the request of the other Party, explain why it has not accepted a technical regulation of the othe r Party as equivalent (Article 7.7). 
45. Co-operation for regulatory effectiveness is enc ouraged by Article 7.8, including through the 
promotion of good regulat ory practice based on risk management principles, improvements in the 
quality and effectiveness of regulations;  developmen t of joint initiatives to manage risks to health, 
safety and the environment;  and building unders tanding and capacity to promote better regulatory 
compliance.  In addition, where goods are covered by an Annex or Implementing Arrangement to the 
Chapter as provided by Article 7.12, and a Party takes a measure to manage an immediate risk that it 
considers the goods in question may pose to health, safety or the environment, it shall immediately 
notify the other Party, through their contact points, of  the measure and the reasons for its imposition.  
The Parties indicate that no Implementing Arrangements have been signed to date. 
46. Co-operation and transparency is encouraged by  Article 7.9 which requires a Party publishing 
a notice under Article 2.9 or 5.6 of the WTO TBT Agreement to include in the notice a statement 
describing the objective of the proposal and its rationa le;  and transmit the proposal electronically to 
the other Party through its enquiry point under Ar ticle 10 for the WTO TBT Agreement at the same 
time as it notifies WTO Members under the WTO Agreement.  At least 60 days shall be allowed from the transmission of the notification for the other Pa rty and interested persons to make comments in 
writing.  Any notification made under Article 2. 10 or 5.7 of the WTO TBT Agreement will be 
transmitted by the Party at the same time to the other Party electronically through its enquiry point 
under Article 10 of the WTO TBT Agreement.  Techni cal consultations may also be requested at any 
time with regard to implementation of the Chapte r as well as for the application of any technical 
regulation or the recogniti on of any standard or c onformity assessment procedures.  However, these 
technical consultations are without prejudice to the rights and obligations of the Parties under Chapter 16 on Dispute Settlement (Article 7.11). 
47. To implement the Chapter, the Parties are to designate a contact point and are to notify each 
other promptly of any change to their contact points or the details of the relevant officials.  The contact points, which are the Trade Environment Team  in the Trade and Investment Branch, Ministry 
of Business, Innovation and Employment in New Zealand and the Accreditation Division of the 
Department of Standards in Malaysia , have been notified by the Parties to each other.  They are to 
form part of a Committee on TBT established by th e Agreement under Article 7.10 whose objectives 
include to promote and monitor the implementa tion and administration of the Chapter.  The 
Committee is expected to meet within one year of  entry into force of the Agreement and annually 
henceforth unless agreed otherwise by the Parties.  It shall report to the Joint Committee (see Section 
on institutional provisions below).  According to th e Parties the TBT Committee has not met thus far. 
2. Safeguard mechanisms 
(a) Overview 
48. Chapter 5 of the Agreement covers trade reme dies.  The Parties retain their rights and 
obligations under the WTO Agreements on Implem entation of Article VI of GATT 1994, and on WT/REG306/1 
Page 16  
 
  Subsidies and Countervailing measures as we ll as Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards.  They also agree that  any trade remedy actions will be carried out in 
a transparent manner. 
49. Safeguards may only be applied for a period of time necessary to prevent or remedy serious 
injury and to facilitate adjustment;  they may be taken for a maximum two year period, extendable by 
up to one year (thus a maximum period of three years) provided that the conditions of Chapter 5 are 
met and the measure continues to be applied to th e extent necessary to prevent or remedy serious 
injury and that there is evidence to show that the industry is adjusting.
6    For products subject to tariff 
rate quotas under the Agreement, safeguard or pr ovisional measures may not be applied on a product 
originating in the other Party within the quota quan tity.  In any case all safeguard measures in place at 
the end of the transition period under the Agreement for the particular good, shall be terminated and 
no new safeguards are permitted once the transition period (until 2018 at the latest as defined in 
Article 5.5(f)) is over.    Where the proposed durat ion of a measure is over one year (including any 
extension), the Party applying the measure shall pr ogressively liberalize it at regular intervals to 
facilitate adjustment.  Safeguards or provisiona l measures are not permitted again on the same 
originating product for a period of time equal to the duration of the previous safeguard or two years, 
whichever is longer.  In addition, safeguards or  provisional measures are not permitted on originating 
products in the other Party that are subject to  a measure under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards, or the WTO Agreemen t on Agriculture.  Safeguards already in force 
under the Agreement must be terminated prior to the imposition of an action to be applied pursuant to 
Article XIX of GATT 1994 and the WTO Agreem ent on Safeguards, or the WTO Agreement on 
Agriculture.  Once a safeguard is terminated the Pa rty applying the safeguard shall apply the rate of 
duty expected for that product under Annex I of the Party's schedule of tariff commitments, as if the measure had never app lied (Article 5.7). 
(b) Global safeguards 
50. The Parties may take global safeguard measu res under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards.  In doing so, they may exclude imports of any originating products 
of the other Party from the action, where such impor ts are not a cause of serious injury or threat 
thereof. 
(c) Bilateral safeguards 
51. Bilateral safeguards are permitted under the Agreem ent but only during the transition period.  
Under Article 5.6 if as a result of the reduction or  elimination of customs duties pursuant to the 
Agreement, an originating product of a Party is be ing imported by the other Party in such increased 
quantities, in absolute terms or relative to domes tic production, and under such  conditions as to cause 
or threaten to cause serious injury to a domestic  industry producing like or directly competitive 
products, the other Party may, to the extent nece ssary to prevent or remedy serious injury and 
facilitate adjustment, apply a safeguard.  The safe guard may consist of a suspension in the further 
reduction of import duty as scheduled under the Ag reement on the date on which the measure is 
taken;  or an increase in the rate of customs duty to a level not exceeding the lesser of the MFN 
applied rate of duty on the date on which the acti on to apply the measure is taken, or the day 
immediately preceding the date of entry into force of the Agreement, or for a new safeguard taken 
from 2016, the preferential tariff rate applied under the Agreement on the day three years prior to the date on which the action is taken. 
                                                      
6 New Zealand indicates that such adjustment is to be measured through the use economic variables 
such as output, prices, profit and investment.  For Malaysia such adjustment is to be measured by industry and thereafter by the investigating authorities.  Evidence that the industry is adjusting would be decided on a case by 
case basis.  Malaysia has, however, yet to have any experience on safeguards adjustments.    WT/REG306/1 
 Page 17 
 
 
  (d) Balance of payments safeguards 
52. Article 17.3.1(a) permits the use of restrictiv e import measures in the case of trade in goods, 
in accordance with GATT 1994 and the WTO Understa nding on the Balance of Payments Provisions 
of the GATT 1994.  In determining the incidence of these restrictions, the Parties may give priority to economic sectors which are more essential to thei r economic development but the measures may not 
be adopted or maintained for the purpose of protect ing a particular sector.  The Parties indicate the 
sectors that are essential to economic development would be determined on a case by case basis but 
such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector.    
Any such restrictions or changes to existing restric tions, shall be notified promptly to the other Party 
from the date such measures are take n.  In addition, the Party maintaining or adopting the restrictions 
shall promptly commence consultations with the othe r Party from the date of notification to review 
the measures. 
3. Anti-dumping and countervailing measures 
53. The Parties retain their rights and obligati ons under the WTO agreement on Implementation 
of Article VI of GATT 1994 (Anti-Dumping Agre ement), the WTO Agreement on Subsidies and 
Countervailing Measures, Article XIX of GA TT 1994 and the WTO Agreement on Safeguards 
(Article 5.1).  Under Article 5.2 the Parties must as soon as possible, but no longer than five working 
days following the receipt of a properly documented application from an industry in one Party for the 
initiation of an anti-dumping investigation for products  from the other Party, give written notice to the 
other Party through the designated contact points.
7  Where a Party considers that in accordance with 
Article 5 of the Anti-Dumping Agreement, there is sufficient evidence to initiate an investigation, it 
must notify the other Party (as in Article 12.1 of the Anti-Dumping Agreement) in writing within five 
working days of its decision.  A response to a re quest for consultations from a Party on the initiation 
decision must be within 10 days of the request.  The Parties may use either of the time periods 
indicated in Article 5.2 they intend to use for determining if the volum e of dumped imports are 
negligible or not.  New Zealand, as notified to the WTO (G/ADP/N/100/NZL on 24 January 2003), 
indicates that it will use "the period of data collec tion for the dumping investigation" as its preferred 
timeframe in all investigations;  in practice Malaysia indicates that it has used the most recent 
12 consecutive months prior to initiation for which da ta are available.  If they choose not to use the 
designated period, the other Party should be no tified of the change in methodology through the 
designated contact point.   
4. Subsidies and State-aid 
54. Although the Agreement does not address subsidies and State-aid per se , in Article 2.6 the 
Parties state their overall objective of the multilateral elimination of all forms of export subsidies for 
agricultural goods and agree to continue to cooper ate in an effort to reach agreement on their 
elimination and prevent their reintroduction in any form .  Furthermore, consistent with their rights and 
obligations under the WTO Agreement, they agree to el iminate, as of the date of entry into force of 
the Agreement, all forms of export subsidies for agri cultural goods destined for the other Party, and to 
prevent their reintroduction in any form. 
5. Customs-related procedures 
55. Provisions relating to customs procedures (Cha pter 4) aim to simplify and harmonize such 
procedures between the Parties, ensure consistency, predictability and transparency in the application 
                                                      
7 The designated contact points are:  Trade Remedies Group, ED Group, Ministry of Business, 
Innovation and Employment for New Zealand;  and the Trade Practices Section, Ministry of International Trade 
and Industry for Malaysia. WT/REG306/1 
Page 18  
 
  of their customs laws and regulations, promote efficient and expeditious  clearance of goods and 
facilitate trade in goods between them and promote co-operation between their customs 
administrations.  The Customs Administrations will assist each other in the implementation and operation of the Agreement, to ensure security of their mutual trade in goods, on import and export 
prohibitions and other issues as they determine.  Th ey may provide each other with mutual assistance 
to prevent and/or investigate breaches of Customs laws, to the extent permitted by their domestic 
legislation including technical advice and assistance  for risk assessment, simplifying and expediting 
customs procedures and improving technical skills.  They will provide notice to each other of any 
significant modification of customs law or policies go verning the movement of goods that is likely to 
substantially affect the operation of the Chapter. 
56. To facilitate trade the Parties ag ree to ensure that their cust oms procedures and practices are 
predictable, consistent and transparent.  Their cu stoms procedures are to conform where possible with 
the standards and recommended practices of the World Customs Organization (WCO) including those 
of the International Convention on the Simplifi cation and Harmonization of Customs Procedures.  
Periodic reviews shall be conducted to further si mplify customs procedures and develop mutually 
beneficial arrangements to facilitate the flow of goods between them.  Procedures to expedite the 
clearance by customs of express consignments provi de for pre-arrival processing of information, 
submission of a single document where possible, as a pproved by the importing Party for all goods in a 
single consignment through electronic means, and minimizing documentation required for such 
consignments (Article 4.6).  Electronic declarati ons are encouraged, with Article 4.7 requiring the 
Parties to adopt as soon as possible electronic procedures for all reporting requirements. 
57. Administrative rulings, decisions and determina tions by Customs may be appealed by the 
importer, exporter or any other affected person under Article 4.9, with each Party required to provide 
for the right of appeal to both the Customs Admini strations but also to a judicial authority.  The 
decision on appeal and the reasons for it must be provided to the appellant in writing. 
58. Article 4.10 requires the Parties to provide adva nce rulings on the classification and origin of 
goods as requested by an importer, exporter or producer of a Party before importing a good.  The 
advance ruling is to be based on information provid ed by the person requesting it, including a detailed 
description of the good and other relevant informa tion and any other relevant information in the 
possession of the decision maker, and is to take place w ithin 40 days or at the latest within 90 days of 
receipt of all the necessary information.  Advance rulings may also be changed or revoked if it is 
determined that the original ruling was based on an error or following a change in domestic law 
consistent with the Agreement, a material factor or the circumstances on which the ruling was based.  
The Parties are also to adopt or maintain proce dures which allow goods to be released within 48 hours 
of submission of all releva nt import documents required by Customs except under certain 
circumstances including if the importer does not prov ide the information required, the goods are to be 
examined through the application of risk mana gement techniques or other relevant domestic 
legislation of the importing Party or delays due to force majeur e (Article 4.11).  In cases of significant 
differences between the Parties' customs administra tions on the application of the provisions of 
Chapter 4, Article 4.12 provides for consultations which can be required by either Party.  These 
consultations are without prejudice to the rights of the Parties under the dispute settlement Chapter of 
the Agreement or the WTO Dis pute Settlement Understanding. 
6. Other regulations 
E. S
ECTOR -SPECIFIC PROVISIONS ON TRADE IN GOODS  
59. There are no sector-specific provisions on trade in goods in the Agreement.  WT/REG306/1 
 Page 19 
 
 
  IV. PROVISIONS ON TRADE IN SERVICES 
A. SCOPE AND DEFINITIONS  
60. The Agreement addresses trade in services in Chap ter 8.  Additionally, Chapter 9 (Movement 
of Natural Persons) and parts of Chapter 10 (Invest ment) are relevant, and are discussed in Sections 
IV.C.5 and 6 in as far as they relate to trade in services.   
61. Chapter 8 applies to measures adopted or mainta ined by a Party affecting trade in services.  
Like in the GATS, trade in services is de fined as encompassing the four modes of supply 
(Article 8.1(o)). 
62. As per Articles 8.3.4 and 8.3.6, Chapter 8 do es not apply to:  (i) services supplied in the 
exercise of governmental authority8;  (ii) measures with regard to government procurement;  (iii) 
subsidies or grants provided by a Party or State Enterprise thereof9;  (iv) measures affecting natural 
persons seeking access to the employment market of  a Party and measures regarding citizenship, 
nationality, residence or employment on a permanent basis;  (v) cabotage in maritime transport;  and 
(vi) measures affecting air traffic rights or services directly related to the exercise of traffic rights 
except for measures affecting aircraft repair and maintenance services, selling and marketing of air 
transport services, computer reservation system services and ground-handling services.10 
63. The scope of the trade in services Chapter is thus narrower than the GATS as it totally 
excludes government procurement11, subsidies and maritime cabotage.  But it is also wider than the 
GATS in that it explicitly includes ground-handling servi ces.  Its coverage is also broader when it 
comes to the definition of natural persons, which encompass both citizens and permanent residents not 
only for New Zealand, but also for Malaysia in the Agreement.12   
B. DENIAL OF BENEFITS  
64. Subject to notification and consultation, a Part y may deny the benefits of Chapter 8 to a 
service supplier of the other Party where the service is  being supplied by an enterprise that is owned 
or controlled by persons of a third party or the de nying Party, and the enterprise has no substantive 
business operations in the territory of  the other Party (Article 8.14). 
                                                      
8 Which are defined exactly as in the GATS. 
9 However, Article 8.17 stipulates that the Parties w ill review the issue of subsidies related to trade in 
services in the light of any subsidy disciplines agreed und er GATS Article XV.  It also  provides that the Parties 
give sympathetic consideration to requests for consulta tions regarding the adverse effect of a subsidy of the 
other Party. 
10 With respect to the carve-out of air transport services, Article 8.3.7 provides for a review mechanism, 
aimed at discussing the incorporation of the results of the negotiations under the review of the GATS Annex on 
Air Transport Services. 
11 Under GATS Article XIII, government procurement is not totally exempt from coverage, but just 
from the application of the MFN, market  access and national treatment disciplines. 
12 The GATS definition of "natural persons of a Member" includes permanent residents only for 
Members which have submitted a notification to th at effect at the time of WTO Membership (see 
Article XXVIII(k)(ii)).  While New Zeal and notified in this sense, in document S/C/N/2, Malaysia did not. WT/REG306/1 
Page 20  
 
  C. G
ENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
65. The market access disciplines in Article 8.4 ar e virtually identical to those of the GATS.13  
Each Party is required to accord services and servi ce suppliers of the other Party market access 
treatment no less favourable than that provided for by  the terms of its schedule (Article 8.4.1).  In 
sectors where market access commitments are undertaken , the same six types of limitations specified 
in GATS Article XVI:2 cannot be maintained or adopt ed by the Parties unless otherwise specified in 
their respective schedules (Article 8.4.2).   
66. The market access provisions of Article 8.4, alt hough formally relevant for the four modes of 
supply by virtue of the cross-reference to Articl e 8.1(o), are however confined to the Parties' 
commitments contained in Annex 4 (Schedules of  Specific Services Commitments), which cover 
modes 1 to 3.  Commitments on the movement of natu ral persons are set out in Annex 6, pursuant to 
Chapter 9 of the Agreement. 
2. National and MFN treatment  
67. Under Article 8.5, which mirrors Article XVII of the GATS14, each Party must accord to 
services and service suppliers of the other Party tr eatment no less favourable than it accords to its own 
like services and service suppliers in the sectors it has inscribed in its schedule, and subject to any 
conditions and qualifications set out therein.  Like for market acce ss, the relevant commitments are 
those contained in the Annex 4 schedules, which cover modes 1 to 3.  
68. Article 8.8 provides that, with respect to the services sectors listed in Annex 5 (Most 
Favoured Nation Sectoral Coverage), and subject to any conditions and qualifications set out therein, 
each Party must accord services and services suppliers of the other Party treatment no less favourable 
than it accords to like services and service suppliers of a third Party.   
69. The sectors for which MFN coverage is provi ded are listed under Annex 5.  Specifically, 
these are private education services (subject to certa in qualifications for Ma laysia), environmental 
services, engineering and integrated engineering ser vices, computer and related services and services 
incidental to mining.  
70. The MFN provision is qualified in three further respects.  First, through a grandfathering of 
measures that accord differential treatment to thir d parties under any previously concluded free trade 
agreement or multilateral international agreement (A rticle 8.8.2), including any measures taken as part 
of a wider process of economic integration or tr ade liberalization between the parties to such 
agreements (Article 8.8.3).  Second, through the explicit exemption from the MFN obligation of any 
existing or future measures involving aviation, fisher ies or maritime matters (Article 8.8.4).  Third, 
through the absence of an obligation to extend to  the other Party any recognition accorded to the 
                                                      
13 GATS Article XVI, "Market Access", is footnoted twice.  While the text of footnote 9, relating to 
measures limiting inputs for the supply of services, has been moved to the main body of the Article (under 
8.4.2.(c)), footnote 8, relating to capital transfers linked to mode 1 and mode 3 commitments, has been omitted from Article 8.4.  Nonetheless, Article 10.7 of the Ag reement contains disciplines committing the Parties to the 
free and timely transfer of capital re lating to a (service) investment into and, additionally to the GATS 
disciplines, out of their territories, ir respective of any commitment s that may have been undertaken in the sector 
in question (see Section C.5).  Moreov er, the Parties indicated that while footnote 8 to GATS Article XVI does 
not apply, elements of the capital movements guarantee related to mode 1 commitments referred to in that 
footnote may be captured under the Tr ade in Services Chapter of the Agr eement, specifically paragraph 2 of 
Article 8.13 (Payme nts and Transfers). 
14 Save for the footnote to Article XVII, which has been moved into the body of the text.  WT/REG306/1 
 Page 21 
 
 
  education or experience obtained, requirements met or licences or certifications granted in the 
territory of a third party (Article 8.9.3). 
71. However, Article 8.15.3 provides that, as part of the periodic negotiati ons aimed at improving 
specific commitments, Article 8.8 be periodically re viewed, with a view to progressively extending 
MFN treatment to additional sectors not listed in Annex 5.   
3. Additional commitments 
72. Similarly to the GATS, the possibility of nego tiating additional commitments with respect to 
measures affecting trade in services that are not subject to market access or national treatment disciplines is foreseen by Article 8.6.  Differently  from what Chapter 8 foresees for market access and 
national treatment, any such additional commitments ar e to be set out in Annex 4 schedules, as well as 
in Annex 6 schedules (Schedules of Moveme nt of Natural Persons Commitments).  
4. Commercial presence 
73. Chapter 10 applies to investment but, in principl e, not to investment in the services area.  
Measures affecting trade in services are, in fact, carved out from the scope of Chapter 10 (Articles 10.3.2 and 8.3.2).  However, Article 10.3.3 (and Article 8.3.3) provide for the application of 
some of the Agreement's investment rules to service s.  In particular, disciplines relating to transfers 
(10.7), expropriation (10.8), compensation for losses (10.9), minimum standard of treatment (10.10), subrogation (10.13) and investor-State dispute settle ment (section B) apply to measures affecting the 
supply of a service through commercial presence.   
74. These provisions not only go beyond existing GATS disciplines, but they also apply 
regardless of whether the service sector in questio n has been included in the Parties' Annex 4 
schedule.  Therefore, they add to the Agreemen t's existing unconditional obl igations, albeit only in 
respect of measures affecting trade through mode 3. 
5. Movement of natural persons 
75. Chapter 9 sets out rights and obligations additional to those in Chapters 8 and 10 in relation to 
the movement of natural persons between the Pa rties for business purposes (Article 9.2(b)).  
Crucially, the scope of Chapter 9 is not confined to  natural persons involved in the supply of a service 
(mode 4 of the GATS), but extends more broadly to  business persons in other economic sectors.  The 
Agreement thus ventures well beyond WTO disciplines,  which presently only apply to the movement 
of persons if this is captured under the definition of  mode 4, and is thus exclusively service-related. 
76. The Chapter applies to measures affecting the move ment of natural persons  of a Party into the 
territory of the other Party as laid out in their Annex 6 schedules (Schedules of Movement of Natural 
Persons Commitments) (Article 9.3).  It further presen ts an indicative list of categories of persons that 
may be concerned by the provisions in the Chapter.  In addition to categories usually encountered in 
GATS schedules, i.e. business visitors, contr actual service suppliers, independent service 
suppliers/professionals and intra-corporate transf erees, Chapter 9 also includes 'installers or 
maintainers', a category which has been ve ry infrequently committed to under the GATS.
15  
                                                      
15 Chapter 9 defines only some of these categories, namely 'business visitor', 'installer or maintainer' 
and 'intra-corporate transferee' (a dditionally to the functions of 'senior manager' and 'specialist'). WT/REG306/1 
Page 22  
 
  77. Paragraphs 2 and 3 of Article  9.3 reproduce the provisions of the GATS Annex on Movement 
of Natural Persons Supplying Services under the Agreement virtually to the letter.
16  T h e y  t h u s   
confirm that the scope of Chapter 9 is confined to non-permanent movements and that the Parties 
retain the freedom to apply measures to regulate th e entry and stay of natural persons of the other 
Party in their own territory, including by requiring a visa for natural persons of either Party and not 
for those of others.  
78. Each Party sets out, in Annex 6, a schedule containing its commitments for the temporary 
entry and stay in its territory of the other Party's natural persons (Article 9.6).  The schedule specifies 
the conditions and limitations for each committe d category of persons, including the permitted 
duration of stay.  In accordance with its commitme nts, each Party shall grant temporary entry or 
extension of stay to natural persons of the other Pa rty, provided that prescribed application procedures 
are followed and all relevant eligibility require ments for entry are met (Article 9.5).   
79. A number of provisions in Chapter 9 go beyond GATS obligations with regard to mode 4.  
Specifically, Article 9.5.3 requires that fees for the processing of an immigration formality be 
reasonable;  Article 9.4 provides for the exped itious processing of applications for immigration 
formalities, including by setting precise timelines an d requiring the provision of information about the 
status of an application;  Article 9.7 contains additional transparency requirements with regard to 
relevant immigration formalities, requirements for temporary entry and modifications thereof;  and 
Article 9.8 provides for the establishment of dedicated contact points.   
80. Finally, Article 9.9 restricts access to the Dispute Settlement provisions in Chapter 16 of the 
Agreement to instances where a refusal to grant temp orary entry involves a pattern of practice and the 
affected natural person has exhausted a ll available pertinent domestic remedies. 
D. LIBERALIZATION COMMITMENTS  
81. The schedules of commitments are found in Anne x 4 (modes 1 to 3) and Annex 6 (mode 4).  
They follow a "positive list" approach (Article 8.7).  For Annex 4 commitments, market access, 
national treatment and additional commitments ap ply only to the sectors listed, subject to the 
limitations and conditions inscribed therein.  In th e case of Annex 6 commitments, instead, Article 9.5 
essentially replaces the market access and national tr eatment disciplines with the commitment to 
'grant temporary entry'.  However, Malaysia's co mmitments in Annex 6 reintroduce the "traditional" 
market access and national treatment way of scheduling, possibly becau se these commitments are 
confined to the movement of natura l persons in relation to the supply of a service, i.e. they exclusively 
concern mode 4.  According to the Parties Articl e 9.5 of the Agreement does not intend to replace the 
market access and national treatment disciplines with  the grant of temporary entry under Annex 6.  
Instead the Article is intended to complement to provide the market access and national treatment 
disciplines for mode 4 as well as to provide for the grant of temporary entry to the categories of natural persons under Article 9.3.  In this regard, the limitations st ated in Annex 6 are provided under 
Article 9.6 of the Agreement. 
82. Along the lines of Article XX:2 of the GA TS, Article 8.7.3 prescribes that measures 
inconsistent with both Articles on market access an d national treatment be inscribed in the column 
relating to market access only, although the inscrip tion is considered as qualifying national treatment 
as well. 
                                                      
16 The only differences are that paragraph 2 also excludes measures regarding "nationality" from the 
scope of application of Chapter 9, and paragraph 3 includes footnote 13 to the GATS mode 4 Annex in the main 
body of Article 9.3.  WT/REG306/1 
 Page 23 
 
 
  83. Article 8.15 stipulates that the Parties shall en ter into successive rounds of negotiations no 
later than two years from the date of entry into force of the Agreement, with a view to further 
improving specific commitments under that Chapter,17 so as to progressively liberalize trade in 
services between the Parties.  The Parties have i ndicated that a new round of negotiations has not yet 
commenced.  
84. Article 8.15.2 further provides that, if a Party concludes a new "negative list" agreement, it 
shall, at the request of the other Party, commen ce re-negotiation of Annex 4 commitments, with a 
view to progressively liberalizing trade in services between the Parties on a "negative list" basis. 
85. Provisions on the modification of schedules and compensations comparable to those in 
Article XXI of the GATS are found in Article 8.16.   They apply to commitments in Annex 4 and 
Annex 6 schedules.  
1. New Zealand 
(a) Horizontal commitments 
86. In its GATS schedule, New Zealand has listed a horizontal national treatment reservation 
under the four modes of supply, providing cover fo r measures according more favourable treatment to 
any Maori person of organization.  While no such limitation has been included in its Annex 4 or 
Annex 6 schedules, the Agreement contains a similar exception in Article 17.6 (Treaty of Waitangi).   
87. New Zealand's commitments on the movement of natural persons in Annex 6 are not 
restricted to the supply of a service, i.e. they go beyond mode 4.  For the purpose of this factual presentation, however, the analysis is conf ined to the mode 4-specific elements. 
88. New Zealand has improved on its GATS horizon tal mode 4 commitments by removing the 
requirement that 'installers/maintainers' a nd 'business visitors' who are undertaking business 
consultations concerning the establishment of a co mmercial presence enter only as intra-corporate 
transferees (ICT) and by adding the category of 'independent service suppliers' to its schedule.   
89. With regard to all business visitors, the comm itments foresee a maximum duration of stay of 
90 days.  A similar duration is indicated in the GATS schedule with regard to business visitors who 
are service sellers.  However, ICT specialists and/senior personnel who ar e moving to establish a 
commercial presence are permitted under the GATS to stay for a maximum of twelve months. 
90. There is no clear indication of the level of national treatment commitments undertaken by 
New Zealand in mode 4.  Unlike the GATS schedule,  where full national treatment is granted to the 
categories of natural persons inscribe under the ma rket access column, Annex 6 contains no explicit 
reference to national treatment.  However, paragr aph 5 of New Zealand's Annex 6 schedule specifies 
that all the commitments in respect of the presen ce of natural persons mode in its GATS schedule 
apply to the service suppliers of the other Party, as also confirmed by New Zealand.  
                                                      
17 As indicated by the Parties, Article 8.19 also refers to the Committee on Trade in Services which 
conducts reviews of the commitments in accordance with Article 8.15 and of the implementation and operation 
of Chapters 8 (Trade in Services) and 9 (Movement of Natural Persons). WT/REG306/1 
Page 24  
 
  (b) Sector-specific commitments 
91. New Zealand has expanded the scope of its  business services GATS commitments by adding 
around 20 sub-sectors to its schedule, with fully liberal modes 1-3 commitments.
18  It has also 
removed all limitations in mode 3, market acc ess, for services incidental to animal husbandry.19  
92. In construction services, an 'unbound' for mode 1 (due to lack of technical feasibility) has 
been replaced with a full commitment for consulta ncy services, and new, liberal, commitments have 
been undertaken for renting services related to e quipment for construction and demolition (CPC 518). 
93. With regard to distribution services, the sc ope of the commitments for commission agents' 
services and wholesale trade has been expanded by a dding to the schedule services relating to certain 
ovine products.20  In education services, two sub-sectors, falling under 'other education services', have 
been newly and fully committed to. 
94. In contrast to the situation in the GATS sche dule, where the sector is completely absent, 
New Zealand has inscribed fully liberal commitment s in environmental services, specifically covering 
consultancy services in wastewater management, waste management, sanitation and similar services, a number of 'other environmental services', as well as well as wastewater and waste management 
services when contracted by private enterprises.  
95. In insurance services, full bindings have been  inscribed in non-life insurance services for 
marketing and sale related to certain ovine produc ts, and in insurance intermediation for loss of 
products related to those same ovine  products.  Additionally, a restriction concerning compulsory hail 
and disaster insurance with the Apple and Pear Ma rketing Board in those sa me insurance subsectors 
has been removed. 
96. Marketing and sales related to certain ovine  products have been added to the GATS 
commitments relating to maritime transport servi ces and selling and marketing of air transport 
services.  
97. Finally, new and fully liberalized modes 1-3 co mmitments have been inscribed for washing, 
cleaning and dyeing services under 'other services not included elsewhere'. 
98. Table IV.1 provides a succinct comparison of New Zealand's specific commitments under the 
GATS and under the Agreement for modes 1 to 3. 
 
 
 
  
 
  
                                                      
18 The relevant sub-sectors are:  legal services in respect of foreign law, business tax planning and 
consulting services (CPC 86301), integrated engineerin g services, consultancy related to urban planning and 
landscape architecture, maintenance and repair of office machinery and equipment, other computer services, 
management consulting services, services related to management consulting, services incidental to mining, 
placement and supply services of personnel, photograp hic services, convention se rvices, credit reporting 
services, collection agency services, interior design se rvices, telephone answering services, duplication services, 
mailing list compilation and mailing services, and other business services. 
19 However, a restriction has been  added under national treatment, li miting access to the national dairy 
herd testing database to instance when this is the interest of the national industry. 
20 Ovine wool and edible offals of bovine and ovine origin.  WT/REG306/1 
 Page 25 
 
 
  Table IV.1 
New Zealand: comparison between the GATS and the Agreement spec ific commitments in trade in services (excluding mode 4) 
Sectors GATS RTA 
1. BUSINESS SERVICES  
A. Professional services √ New/Improved 
B. Computer and related services  √ New 
C. Research and development - - 
D. Real estate √ Similar 
E. Rental/Leasing services without operators √ Similar 
F. Other √ New/Improved* 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Simila r 
D. Audiovisual √ Simila r 
E. Othe r --  
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ New/Improved 
4. DISTRIBUTION SERVICES √ Improved 
5. EDUCATION SERVICES √ New 
6. ENVIRONMENTAL SERVICES - New 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Improved 
B. Banking and other financial services √ Similar 
8. HEALTH RELATED AND SOCIAL SERVICES - - 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Similar 
B. Travel agencies and tour operators √ Similar 
C. Tourist guides √ Similar 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES - - 
11. TRANSPORT SERVICES   
A. Maritime √ Improved 
B. Internal waterways - - 
C. Air  √ Improved 
D. Space - - 
E. Rail  √ Similar 
F. Road √ Similar 
G. Pipeline √ Similar 
H. Services auxiliary to all modes of transport √** Similar 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New 
 
Note: 
√: Commitments in the GATS schedule (with or without limitations). 
-: No commitments. 
New: New commitments made under the Agre ement (with or without limitations).  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS. Similar: Similar commitments made under the Agreement as those under the GATS. 
* See also description in relevant paragraph. 
** Maritime transport only. 
 
Source :  Draft Consolidated GATS Schedule of Specific Comm itments (S/DCS/W/NZL), prepared by the Secretariat 
(in 2003), and relevant section of Annex 4 to the Agreem ent.  The comparison only concerns modes 1-3, market 
access, national treatment, and add itional commitments ; it does not concern co mmitments under mode 4. WT/REG306/1 
Page 26  
 
  2. Malaysia 
(a) Horizontal commitments 
99. Malaysia's mode 3 horizontal commitments in Annex 4 improve on those under the GATS by 
requiring approval for the acquisition of the voting rights of a Malaysian corporation only when an 
aggregate foreign interest exceeds RM 10 million, instead of RM 5 million. 
100. As discussed, the commitments Malaysia has undertaken in Annex 6 cover only the 
movement of natural persons in rela tion to the supply of a service, i.e. are restricted to mode 4.  In 
comparison to its GATS mode 4 horizontal section,  Malaysia has expanded its commitments in a 
number of respects.  It has added business visitors whose movement is related to the establishment of 
a commercial presence
21 under all sectors in which it has comm itments, and include d the category of 
'installers or maintainers' in a number of sectors.  The duration of stay for intra-corporate transferees, 
specialists/experts and professionals has also been in creased, from five to ten years, and the number of 
specialist intra-corporate transferees allowed without  undergoing a market test has been raised from 
two to three. 
(b) Sector-specific commitments 
101. This section will first consider the sector-sp ecific commitments undertaken by Malaysia in 
modes 1 to 3, which are contained in Annex 4.   
102. Commitments in business service s have been expanded compared to the GATS through the 
addition of:  urban planning services, data pr ocessing services, human resources management 
consulting services, public relations services and veterinary services.22  Commitments have also been 
improved in some sub-sectors through a higher permitted foreign equity limit23, additional permitted 
types of commercial presence24, the lifting of all market access restrictions in mode 325 and full 
bindings in mode 2.26   
103. Under communication services, generally the commitments on telecommunication services 
have been improved by allowing for a higher lim it on foreign equity (from 30% to 49%) and the 
possibility of setting up also through locally incorpor ated joint-venture corporations.  Additionally, in 
certain instances, establishment through the acqui sition of shares has been expanded from covering 
just the shares of an existing licenced public tel ecommunications operator to those of "an existing 
appropriately licenced provider".  Malaysia h as indicated that, although CPC 7521 (voice telephone 
services) has been scheduled twice, the scope of th e activities covered is different, hence the different 
level of mode 3 market access commitments unde rtaken.  While the pro-competitive additional 
commitments undertaken under the GATS are not re produced in Malaysia's Annex 4 schedule, 
Malaysia has indicated that they are contained in its  applicable domestic regulation.  Also missing are 
the audio-visual commitments on broadcasting services undertaken under the GATS.   
                                                      
21 It has done so implicitly, by committing on "business visitors" as defined in Article 9.1(a) of the 
Agreement. 
22 Health-related professional services have been scheduled under 'healthcare services', rather than 
under 'business services', which is where they are f ound in Malaysia's GATS schedule and in the GATS W/120 
services sectoral classification. 
23 In accounting, auditing and bookkeeping services , taxation services, advertising services and 
convention services. 
24 In architectural, engineering and integrated engi neering services.  In th e case of architectural 
services, this has been accompanied fo r the inscription of an "unbound" un der national treatment in mode 3, 
replacing a previously all-encompassing "none". 
25 In computer and related services. 
26 In architectural services and engineering services.  WT/REG306/1 
 Page 27 
 
 
  104. In construction services, the permitted share of foreign capital participation has been raised, 
from 30% to 49%, and non-locally-incorporated co mpanies have been permitted to undertake a 
number of construction projects.   
105. Unlike in the GATS schedule, where the sect ors are completely absent, Malaysia has 
undertaken commitments in education and environmenta l services in the Agreement.  Specifically, it 
has added primary, general secondary, higher secondary education services and certain 'other 
education services', as well as some parts of wastewater management services and of a number of 'other environmental services', limited to services contracted by the private sector. 
106. In financial services, a number of technical changes have been introduced to the GATS 
commitments.  In addition, improvements have been  inscribed in banking and other financial services 
(excluding insurance):  with respect to 'accepta nce of deposits', and 'all payment and money 
transmission services' through full bindings in mode 2 and the removal of specific market access 
limitations in mode 3;  for 'advisory, intermedia tion and other auxiliary financial services', a higher 
foreign shareholding limit of up to 49% is permitte d for locally incorporated joint venture companies 
that are licensed to provide financial planning ser vices.  The Parties have indicated that these 
commitments had already been accorded to New Zealand under the ASEAN-Australia-New Zealand 
Free Trade Agreement which was signed earlier in February 2009.  In insurance services, under 
reinsurance and retrocession (life and non-life), a GA TS binding for seven new licences to be granted 
by 2005 for reinsurance businesses has been replaced by an "unbound for new licences".  
107. With regard to healthcare services, the comm itments on private hospital services have been 
improved by allowing for a higher limit on foreign equity (from 30% to 49%). 
108. In tourism services, new commitments have been undertaken for tourist guide services.  
Additionally, commitments in hotel and restaura nt services and travel agency services have been 
improved compared to the GATS:  the lack of a bi nding for mode 1 (due to the lack of technical 
feasibility) has been replaced with a full commitment , and the scope and restrictiveness of the mode 3 
market access limitations have  been reduced.  However, subsector CPC 87909 ('Other business 
services n.e.c.'), for which there are GATS commitmen ts under hotel and restaurant services, does not 
appear in Malaysia's schedule in the Agreement. 
109. Similarly for recreational services, the GATS commitments on CPC 96194 ('Circus, 
amusement park and similar attraction services') ha ve been improved with a full national treatment 
binding for mode 1 (instead of an 'unbound' for la ck of technical feasibility) and the possibility to 
establish through a joint-venture under mode 3, but the sectoral scope of the commitments has been 
limited to 'theme parks'. 
110. Under maritime transport services, Malaysia has made partial commitments in two new 
subsectors:  maritime cargo handling services and classi fication societies.  Additionally, the scope of 
its commitments on international maritime trans portation services has been expanded to include 
government cargo and the limit on foreign shareholding has been increased from 30% to 49%. 
111. Table IV.2 provides a succinct comparison of  Malaysia's specific commitments under the 
GATS and under the Agreement for modes 1 to 3. 
 
   WT/REG306/1 
Page 28  
 
  Table IV.2 
Malaysia: comparison between the GATS and the Agreement speci fic commitments in trade in services (excluding mode 4) 
Sectors GATS RTA 
1. BUSINESS SERVICES  
A. Professional services √ New/Improved* 
B. Computer and related services  √ New/Improved 
C. Research and development √ Similar 
D. Real estate - - 
E. Rental/Leasing services without operators √ Similar 
F. Other √ New/Improved 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - - 
C. Telecommunication  √ Improved* 
D. Audiovisual √ Similar* 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Improved 
4. DISTRIBUTION SERVICES - - 
5. EDUCATION SERVICES - New 
6. ENVIRONMENTAL SERVICES - New 
7. FINANCIAL SERVICES   
A. All insurance and insurance-related services √ Similar* 
B. Banking and other financial services √ Improved 
8. HEALTH RELATED AND SOCIAL SERVICES √ Improved 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Improved* 
B. Travel agencies and tour operators √ Improved 
C. Tourist guides - New 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Improved* 
11. TRANSPORT SERVICES   
A. Maritime √ New/Improved 
B. Internal waterways - - 
C. Air  - - 
D. Space - - 
E. Rail  - - 
F. Road - - 
G. Pipeline - - 
H. Services auxiliary to all modes of transport - New** 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE √ Similar 
Note: 
√: Commitments in the GATS schedule (with or without limitations). 
-: No commitments. 
New: New commitments made under the Agre ement (with or without limitations).  
Improved: Overall improved commitments made under the Agreement compared to those under the GATS. Similar: Similar commitments made under the Agreement as those under the GATS. 
* See also description in relevant paragraphs. 
** Maritime transport only.   
 
Source :  Draft Consolidated GATS Schedule of Specific Comm itments (S/DCS/W/MYS), prepared by the Secretariat 
(in 2003), and relevant section of Annex 4 to the Agreem ent.  The comparison only concerns modes 1-3, market 
access, national treatment, and add itional commitments ; it does not concern co mmitments under mode 4. 
112. Turning now to Malaysia's mode 4 secto r-specific commitments in Annex 6, the 
cross-reference to the horizontal section implies that the category of 'installers/maintainers' has been committed in a number of business services, construction services, education services, a few banking  WT/REG306/1 
 Page 29 
 
 
  services, private hospital services, international maritime transportation services and one 'other 
service'.27  
113. The scope of the commitments for prof essionals in architectural services and 
specialists/experts in medical speciality services ha s been slightly expanded, and the possibility of a 
one-year renewal has been granted to professionals in the engineering services sector.  The permitted 
duration of stay for intra-corporate transferees (ICT) in several banking and insurance services has 
been increased from five to ten years.  Additionall y, the scope of commitments for specialist ICT have 
been marginally expanded in a few banking sub-sect ors, for instance by removing the requirement 
that they be transferred only to specific enterprises;  the number of expatriate specialists or experts in 
direct insurance companies was increased from three to five.   
114. In telecommunication services, however, for several services an 'unbound' has replaced the 
corresponding 'unbound except as indicated in horizont al commitments' found in the GATS schedule.  
Additionally, in a few instances, the 'unbound exce pt as indicated in horizontal commitments' has 
been substituted by an inscription seemingly binding access only for a specified number of 
specialists28 or providing for "no limitation subject to domestic regulation".29  The Parties state that to 
the extent that more specific commitments are lis ted in the sectoral section, these would prevail.30   
E. REGULATORY PROVISIONS  
1. Domestic regulation 
115. Article 8.18 on domestic regulation is inspired by  Article VI of the GATS, but goes further in 
a number of significant respects.   
116. First and foremost, the GATS negotiating mandate in Article VI:4 and the interim disciplines 
in Article VI:5 have been replaced with a set of ob ligations.  Article 8.18.2 requires that, with a view 
to ensuring that measures relating to authori sation, licensing or qualification do not constitute 
unnecessary barriers to trade in services, the Parties ensure that such measures are based on objective and transparent criteria, such as competence and the ability to supply the service, are not more 
burdensome than necessary to ensure the quality of  the service, and do not constitute a disguised 
restriction on the supply of the service.  These ob ligations are to be reviewed with a view to 
incorporating the results of the negotiations under GATS Article VI:4.  International standards of 
relevant international organisati ons are to be used as a benchmark to assess conformity with the 
domestic regulation obligations in Article 8.18.2. 
117. Second, as in the GATS, the Parties must ensu re that all measures of general application 
affecting trade in services are administered in a reasonable, objective and impartial manner.  
However, this obligation is not restricted to tho se sectors where commitments have been undertaken 
(Article 8.18.1).   
118. Third, Article 8.18.5 contains provisions c oncerning the information to be provided to 
applicants when an authorisation is required to supply a committed service.  These mirror those of 
GATS Article VI:3, but are supplemented by a furthe r two obligations.  The competent authorities of 
the Parties are also required to:  identify any supplementary information necessary to finalize 
                                                      
27 Commitments have also been added for specia lists/experts and professionals in international 
maritime transportation services. 
28 See, for instance, the commitments in accounting, auditing and bookkeeping services or taxation 
services.  
29 For translation and interpretation services. 
30 "Unbound" as opposed to "unbound except as indicated in the horizontal section", means no 
commitments in the horizontal and sectoral sections. WT/REG306/1 
Page 30  
 
  incomplete applications and provide the opportunity  to remedy deficiencies within a reasonable 
timeframe; and, if an application is  terminated or denied, inform the applicant of the reasons for such 
action and offer the possibility of resubmission. 
119. As in the GATS, Article 8.18.6 contains an ob ligation to provide for adequate procedures to 
verify the competence of professionals of the other Party in sectors covered by commitments.   
120. Finally, though the unconditional obligation to maintain or institute judicial, arbitral or 
administrative tribunals in GATS Article VI:1 is mi ssing from Article 8.18, the relevant prescriptions 
are reproduced, and further strengthened, in Artic le 14.4 under the transparency Chapter of the 
Agreement (see Section V.A). 
2. Recognition 
121. Article 8.9 contains provisions on recognition  which largely mirror those of GATS 
Article VII.  A Party may recognize, autonomously or  by agreement or arrangement, the education or 
experience obtained, requirements met, or licences or certifications granted in the other Party, but not 
in a manner that would constitute discrimination be tween countries or a disguised restriction on trade 
in services.  As discussed under Section IV.C.4, Artic le 8.9.3 additionally clarifies that MFN does not 
imply an obligation to extend to the other Part y any recognition accorded to the education or 
experience obtained, requirements met, or licences or certifications granted in the territory of a third 
party.  However, a Party that has concluded a r ecognition arrangement with a third party or grants 
recognition autonomously is required to offer adequate  opportunity for the other Party to arrive at a 
similar arrangement. 
122. In addition, paragraphs 6 and 7 of Article 8.9 stipulate that, within two years of entry into 
force of the Agreement, the Parties must en courage the development of mutual recognition 
arrangements on professional services by facilitati ng discussion and information-exchange among 
competent bodies and, within one year of entry into  force, establish a mechan ism that allows for the 
recognition of equivalency of  qualifications granted within the other Party.   
123. The Parties have provided the following info rmation.  The New Zealand Qualifications 
Authority and the Malaysian Qualifications Aut hority signed a Memorandum of Co-operation (MoC) 
on 14 April 2011.  The Joint Working Group established under the MoC provides a mechanism for the recognition of equivalency of qualifications  granted within the other Party as required under 
Article 8.9.  A Joint Working Group project is nearing completion on recognition of respective Bachelors degrees, based on the compatibility of the New Zealand and Malaysian Qualifications 
Frameworks and their quality assurance practices.  Discussion and information-exchange on mutual 
recognition in professional services has yet to be initiated. 
3. Subsidies 
124. Subsidies are disciplined by Article 8.17, whic h stipulates that, notwithstanding the carve-out 
of subsidies or grants provided by a Party, or St ate Enterprise thereof, from the scope of Chapter 8, 
the Parties will review the issue of subsidies related to trade in services in the light of any subsidy 
disciplines agreed under GATS Article XV.  It also provides that sympathetic consideration be given 
to requests for consultations regarding the adver se effect of a subsidy of the other Party.   
4. Safeguards 
125. Article 8.12 provides that, within one year from the entry into force of the Agreement, the 
Parties shall initiate discussions to develop gui delines and procedures for the application of 
emergency safeguard measures, which will eventually  become part of the Agreement.  The Parties  WT/REG306/1 
 Page 31 
 
 
  have indicated that no such discussions have been in itiated to date.  It further foresees the possibility 
of holding consultations, with the aim of reaching a mutually acceptable solution within a reasonable 
timeframe, in the event that a Party deems to be a ffected by the negative impact caused by its Annex 4 
commitments. 
5. Other 
126. Article 8.10, titled "Areas of Co-operation" requi res that the Parties facilitate strengthening of 
co-operation amongst service providers, including by promoting joint-ventures and marketing 
arrangements, through research and development a nd exchange of information.  The Parties have 
confirmed that the promotion of joint-ventures does not imply a requirement for service suppliers to 
establish under this particular type of legal entity. 
F. SECTOR SPECIFIC PROVISIONS ON TRADE IN SERVICES  
127. There are no sector-specific provisions on trade in services in the Agreement. 
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
128. In addition to transparency provisions under various Chapters, Chapter 14 addresses 
transparency more generally.  The Parties must ensure that their laws, regulations, procedures and 
administrative rulings of general application with respect to any matter covered by the Agreement are 
promptly published or otherwise made  available, including electronically or in print form, to enable 
interested persons in the other Party to have access to them.  To the extent possible, the Parties shall 
publish in advance any such measures they prop ose to adopt and provide, where appropriate, 
interested persons and the other Party with a reasonable opportunity to comment on the proposed 
measures (Article 14.2). 
129. All administrative proceedings applying such me asures shall ensure that wherever possible, 
persons of the other Party that are directly affect ed by a proceeding are provided reasonable notice, in 
accordance with domestic procedures, when a proceed ing is initiated, including a description of its 
nature, the legal authority under which it is initiated and a general description of any issues in 
question.  In addition each Party will ensure that su ch persons are afforded a reasonable opportunity to 
present facts and arguments in support of their positions  prior to any final administrative action, when 
time, the nature of the proceeding, and the public in terest permit, and its procedures are in accordance 
with domestic law (Article 14.3). 
130. Where warranted, the Parties will establish or maintain judicial, quasi-judicial or 
administrative tribunals or procedures for prompt re view and correction of final administrative actions 
on matters covered by the Agreement (except those for prudential reasons).  The tribunals must be 
independent of the administrative enforcement office or authority and not have any substantial interest 
in the outcome.  In addition, the parties to th e proceedings are to be guaranteed a reasonable 
opportunity to support or defend their respective positions and a decision based on the evidence and 
submissions of record.  Each Party furthermore will  ensure, subject to appeal or further review as 
provided in its domestic law, that such decisions are implemented by and shall govern the practice of, 
the offices or authorities with respect to the admini strative action (Article 14.4).  Under Article 14.5 a 
Party that considers that a proposed or actual measure might materially affect the operation of the Agreement or otherwise substantially affect the ot her Party's interest under the Agreement, it shall, 
where possible notify the other Party about the measure.  It shall also, upon request and where 
possible, through its contact point under the Agreemen t, provide information and respond to questions 
about the existing or proposed measure (Article 14.5). WT/REG306/1 
Page 32  
 
  B. C
URRENT PAYMENTS AND CAPITAL MOVEMENTS  
131. The Parties are required by Article 10.7 to allow all transfers relating to a covered investment 
to be made freely, without delay and in a freely usable currency at the market rate of exchange 
prevailing at the time of transfer into and out of their territories.31  Such transfers may, however, be 
prevented or delayed through the equitable, non-discr iminatory and good faith application of the laws 
and regulations in certain cases.32  The Parties reaffirm their rights and obligations as members of the 
International Monetary Fund (IMF), under the Articles of Agreement of the IMF, including the use of 
exchange actions which are in conformity with the Articles of Agreement of the IMF, provided that a 
Party shall not impose restrictions on any capital transactions inconsistently with its specific 
commitments under Chapter 10 regarding such trans actions, except under Article 17.3 which allows 
measures to safeguard the balance of payments, or at the request of the IMF. 
C. EXCEPTIONS  
132. Under Article 17.1, the Agreement's genera l exceptions are based on Article XX of GATT 
and its interpretative notes and Article XIV of GATS including its footnotes;  these are incorporated 
into and made part of the Agreement mutatis muta ndis.  The Parties may take measures necessary to 
protect national works or specific sites of historical  or archaeological value or to support creative arts 
of national value provided the measures are not a pplied in a manner which would constitute a means 
of arbitrary or unjustifiable discrimination between  the Parties where like conditions prevail, or a 
disguised restriction on trade in goods, services and investment.33  The Parties are also not required to 
furnish or allow access to any info rmation whose disclosure they determine to be contrary to their 
essential security interests, to take any action th ey consider necessary for the protection of their 
essential security interests or in pursuance of their obligations under the United Nations Charter for 
the maintenance of international peace and security  (Article 17.2).  Any measures taken and their 
termination are to be notified to the Joint Commission. 
133. In addition to general and security exceptions , the Agreement does not apply to taxation 
measures except where corresponding rights and obligations are also granted under the WTO 
Agreements or under Article 10.8 dealing with expr opriation.  Nothing in the Agreement will affect 
the rights and obligations of the Parties under any tax conventions on the avoidance of double taxation 
between them.  In the event of any inconsiste ncy between the Agreement and the Avoidance of 
Double Taxation Treaty between the Parties, the latter will prevail.  Any disputes related to 
expropriation shall be dealt w ith through consultations betwee n the Parties and any tribunal 
established under Article 10.21 of the dispute settle ment mechanism of the Agreement shall accept a 
decision by the Parties on whether the measure is a tax measure.  
134. Under Article 17.6, New Zealand may adopt measures it deem necessary to accord more 
favourable treatment to Maori in respect of matters  covered by the Agreement including in fulfilment 
                                                      
31 Such transfers include contributions to capital;  profits, capital gains, dividends, royalties, licence 
fees, technical assistance and technical and management fees, interest and other cu rrent income accruing from 
any covered investment;  pr oceeds from the total or partial sale or  liquidation of any c overed investment;  
payments made under contract, or pursuant to expropriation and compensation for losses;  payments from the 
settlement of disputes;  and earning and other remuneration of personnel engaged from abroad in connection with the investment. 
32 These relate to bankruptcy, insolvency or the pr otection of creditors' rights;  issuing, trading or 
dealing in securities, futures, options or derivatives;  cr iminal or penal offences and the recovery of the proceeds 
of crime;  financial reporting or record keeping of tr ansfers when necessary to assist law enforcement or 
financial regulatory authorities;  ensuring compliance with orders, or judgements in judicial administrative 
proceedings;  taxation; and social security, public retirement or compulsory savings schemes. 
33 This provision applies for Chapters 2-10 (trade in goods, rules of origin, customs procedures, trade 
remedies, SPS measures, TBT, trade in services, movement of natural persons and investment).  WT/REG306/1 
 Page 33 
 
 
  of its obligations under the Treaty of  Waitangi, provided that the measur es are not used as an arbitrary 
or unjustified discrimination against persons of the ot her Party or as a disguised restriction on trade in 
goods and services.  The interpretation of the Treat y of Waitangi, including as to the nature of the 
rights and obligations arising under it, shall not be subject to disput e settlement under the Agreement.  
However, other matters relating to Article 17.6 ma y be subject to dispute settlement procedures. 
D. ACCESSION AND WITHDRAWAL  
135. There is no provision for accession by third parties to the Agreement.  The Agreement will 
remain in force until one Party gives written notice of  its intention to terminate it;  it shall terminate 
180 days after the date of the notice of the termination (Article 18.10).34 
E. INSTITUTIONAL FRAMEWORK  
136. Article 15.1 establishes the Malaysia-New Z ealand Free Trade Agreement Joint Commission 
(Joint Commission) inter alia to review the impl ementation and operation of the Agreement and to 
supervise and coordinate the work of all Committees established under it.  It may also inter alia refer 
matters to a Committee for advice, establish ad  hoc Working Groups to address specific issues 
otherwise not more appropriately dealt with by an existing Committee or Working Groups, further 
implementation of the Agreement through Implemen ting Arrangements, explore measures to further 
expand trade and investment among the Parties, and s eek to resolve any differences or disputes arising 
on the interpretation or application of the Agreement.  It may meet at the level of Ministers or senior 
officials, as mutually determined by the Parties and co-chaired by senior Government officials of the 
Parties unless the Parties agree to convene at minist erial level.  It shall hold its inaugural meeting 
within one year after the entry into force of the Agreement and the frequency of subsequent meetings 
shall be determined by the Parties.  In this re gard, the Parties indicate that informal talks on the 
implementation of the Agreement were held in  Kuala Lumpur on 14 May 2012.  The inaugural 
meeting of the Joint Commission is tentativ ely scheduled for the fourth quarter of 2012.   Special 
meetings of the Joint Commission may also be convene d as mutually agreed by the Parties within 30 
days of any request by either Party. 
137. The Agreement also established Committees on trad e in goods, technical barriers to trade, 
sanitary and phytosanitary measures, investment, trade in services and on economic co-operation.  
There are also committees established under the side-l etters agreed by the Parties on Environmental 
and Labour Co-operation.  The Committees may set up Working Groups to deal with specific issues 
referred to them by the Joint Commission (Article 15.2).  Communications between the Parties on any 
matter relating to the Agreement are to be fac ilitated through the following contact points:  the 
Ministry of International Trade and Industry for Ma laysia and the Ministry of Foreign Affairs and 
Trade for New Zealand.   
138. The Agreement foresees a general review, with a view to furthering its objectives at a 
ministerial level within five years of the entry in to force of the Agreement and at least every three 
years thereafter.  The conduct of general reviews sh all normally coincide with regular meetings of the 
Joint Commission (Article 15.4). 
F. DISPUTE SETTLEMENT  
139. Chapter 16 of the Agreement deals with disput e settlement in general, while Section B of 
Article 10 (on investment) deals with disputes between investors and states. 
                                                      
34 Amendments may be made by agreement in writing by the Parties which shall come into force on 
dates agreed by them (Article 18.9). WT/REG306/1 
Page 34  
 
  140. The scope of Chapter 16 is disputes between th e Parties on the interpretation, implementation 
or application of the Agreement.  The Agreemen t is to be interpreted in accordance with the 
customary rules of treaty interpretation of public in ternational law.  The Chapter provides for forum 
selection, whereby the Party bringing the complain t must inform the other Party in writing its 
intention to select either the dispute provisions of  the Agreement or another agreement to which both 
Parties are party.
35  Once the forum is selected, it shall be u sed to the exclusion of other possible fora 
in respect of that matter (Article 16.4). 
141. Article 16.5 requires the Parties to accord each  other adequate opportunity for consultations 
on any matter affecting the interpretation, implementa tion or application of the Agreement.  A failure 
to resolve the dispute through consultations can resu lt in the complaining Party referring it to the Joint 
Commission.  Furthermore, if the Party complained  against does not enter into consultations at the 
end of this period, or failure to resolve the dis pute on the part of the Parties or Joint Commission 
under the timelines specified, the complaining Party can request the establishment of an Arbitral 
Tribunal.36   The request to establish a Tribunal should identif y the measure at issue, the legal basis of 
the complaint, including the provisions of the Agre ement that have allegedly been breached by the 
measure or any other relevant provisions and the factual basis for the complaint. 
142. Article 16.9 which describes the process to compose the Tribunal consisting of three 
members, requires each Party to appoint one arbitrat or, while the third will be designated by common 
agreement of the Parties and will be the Chair of the Tribunal.37  The arbitrators must be objective, 
reliable and of sound judgement and have expertise or experience in law, international trade, other 
matters covered by the Agreement or the resoluti on of disputes arising under international trade 
agreements, be independent of and not affiliated with or take inst ruction from either Party, and 
comply with the code of conduct for panellists est ablished under the WTO DSU.   The Chair must not 
be a national or resident of either Party and no t have dealt with the matter in any capacity.   
143. The Arbitral Tribunal shall present its initial repor t within 90 days of its establishment and its 
final report 30 days after, with its findings of f act and determination on whether a disputing Party has 
conformed with its obligations under the Agre ement or caused nullification or impairment.38  T h i s  
report may be made available to the public 10 da ys from its release.  Following publication of the 
report, the Party complained against shall promptly comply with the rulings of the Tribunal or within 
a reasonable period of time when not practicable to comply immediately.  The reasonable period of time is to be mutually agreed by the Parties or wher e they fail to agree, within 45 days of the release 
of the Tribunal's final report, either Party may re fer the matter to the Tribunal which shall determine 
the reasonable period of time followi ng consultation with the Parties. 
144. If the Party complained against fails to bri ngs its measures into conformity with the 
Agreement within the reasonable period of time, it sh all, if so requested, enter into negotiations with 
the complaining Party to reach a mutually sa tisfactory agreement on any necessary compensatory 
adjustment.  The complaining Party may suspend the app lication of benefits of e quivalent effect to the 
Party complained against 30 days after the end of  the reasonable period of time.  The complaining 
Party shall first seek to suspend benefits in the sa me sector or sectors as that affected by the measure 
                                                      
35 According to Article 16.4, a Party shall be deemed  to have selected a forum when it has requested 
the establishment of, or referred a matter to, a dispute settlement panel or Arbitral Tribunal. 
36 Issues of non-violation (nullification or impairme nt) must first be referred to the Joint Commission 
for consideration, if consultations fail to resolve the issue,  before they can go to arbitration.  Any other dispute 
can be taken straight to an Arbitral Tribunal in accordance  with Article 16. 
37 If the Chair of the Tribunal has not been designated by the Parties within 15 days of the appointment 
of the second arbitrator the two arbitrators shall designate the thir d arbitrator by common agreement. 
38 In exceptional cases, if the Tribunal considers it can not release its initial report within 90 days, it 
shall inform the Parties in writing of the reasons for the delay and an estimate of the period in which it will issue 
the report.  WT/REG306/1 
 Page 35 
 
 
  or other matter that the Arbitral Tribunal has f ound to be inconsistent with  the Agreement or caused 
nullification or impairment;  and may suspend benef its in other sectors if it considers that it is not 
practicable or effective to suspend benefits in th e same sector.  The suspension of benefits will be 
temporary and only applied until it has been determ ined that the measures have been brought into 
conformity with the Tribunal's ruling or a mutually satisfactory solution is reached (Article 16.15).  In 
the case of a review requested by th e Party complained against, where possible, the original Arbitral 
Tribunal will be resorted to.  If the Arbitral Tribun al decides that the Part y complained against has 
eliminated the non-conformity or the nullificatio n or impairment, the complaining Party shall 
promptly reinstate any benefits it has suspended under Article 16.15.  If the Tribunal determines the 
level of benefits suspended is excessive, the compla ining Party shall modify the level of suspensions 
accordingly.  Chart V.1 below gives a synopsis of the dispute settlement process. WT/REG306/1 
Page 36  
 
  Chart V.1 
Synopsis of the Agreement's dispute settlements procedures 
 
        
 
    
 
 
 
    
 
    
 
     
 
 Consultations 
(Art. 16.5). 
Referral to the  
Joint Commission  
(Art. 16.7). 30 days (15 days for 
perishables) 
60 days (30 days for 
perishables) 
Request to establish  
Arbitral Tribunal if failure to 
restore dispute. (Art. 16.8). 
90 da ys 
Initial Report  
(Art. 16.11). Implementation 
If no A greemen t Negotiations on 
compensation 
(Art. 16.15) 
Request to convene 
original Tribunal 
(Art. 16.14). 
60 days 
Initial Report to 
Parties (Art. 16.14.) 30 days 
Suspension of  
benefits  
(Art. 16.15). 
20 days 
Final Report If no  
consultations  
within 30 days. 
30 days 
Final Report 
(Art. 16.11) 45 da ys. WT/REG306/1 
 Page 37 
 
 
  145. Article 16.16 provides procedures for the Party co mplained against to request an Arbitral 
Tribunal to review whether it has eliminated the non-conformity or nullification or impairment in 
accordance with the Tribunal's ruling and/or the leve l of benefits suspended by the complaining Party 
is excessive.  Wherever possible, the original Tri bunal will be convened and shall provide its initial 
report within 60 days and a final report 20 days later.  If it rules that the non-conformity has been 
removed the complaining Party shall promptly reinst ate any suspended benefits.  If the Tribunal rules 
that the level of benefits suspended is excessive the complaining Party shall modify the level of 
suspensions accordingly. 
146. Section B of Chapter 10 deals with investor-s tate dispute settlement which are defined as 
disputes between a Party and an investor of the othe r Party that has incurred loss or damage by reason 
of, or arising out of, an alleged breach of any ri ght conferred by Chapter 10 on Investment directly 
concerning a covered investment of the investor of that other Party.  Such disputes shall as far as 
possible be settled amicably through consultations an d negotiations between the investor and the other 
Party, including through the use of non-binding third party procedures.  If the dispute is not resolved 
within 180 days from the date of request for c onsultations, then unless agreed otherwise by the 
Parties, the dispute shall, at the choice of the di sputing investor be submitted to conciliation or 
arbitration by the International Centre for the Se ttlement of Investment Disputes (ICSID), or under the 
rules of the United Nations Commission on Internatio nal Trade Law (UNCITRAL) or if the disputing 
Parties agree, any other arbitration institution, including conciliation or arbitration at the Regional 
Centre for Arbitration, Kuala Lumpur.  As for the Chapter on disputes, forum exclusion is applied.   
G. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  
147. Article 18.2 states that nothing in the Agreemen t shall derogate from the existing rights and 
obligations of a Party under the WTO Agreement or  any other multilateral or bilateral agreement to 
which it is a party.  In the event of any inconsis tency between the Agreemen t and any other agreement 
to which the Parties are party, the Parties shall im mediately consult with each other with a view to 
finding a mutually satisfactory solution in accordance with the customary rules of public international 
law.  The Parties exchanged letters indicating th at nothing in the Agreement would derogate from 
their respective rights and obligations under th e Agreement between ASEAN-Australia and New 
Zealand (AANZFTA).  In particular, where di fferent treatment was provided under the two 
agreements, an exporter, service supplier or invest or could claim the more favourable of the two 
treatments.  The Agreement also terminates the previous agreement between the Parties (Agreement on Trade and Economic Co-operati on dated 17 October 1997) (Article  18.8).  Other regional trade 
agreements (notified and non-notifie d) to which the Parties are party are listed in Table V.1 below. 
Table V.1: New Zealand and Malaysia:  Participation in other RT As (notified and non-notified in force), as of September 2012  
Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
NEW ZEALAND  
Hong Kong, China 01.01.11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V 
ASEAN-Australia/New Zealand 01.01.10 Goods & Se rvices 2010 GATT Art. XXIV & GATS Art. V 
China 01.10.08 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Brunei, Chile, New Zealand  
(Trans-Pacific SEP) 28.05.06 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Thailand 01.07.05 Goods & Services 2005  GATT Art. XXIV & GATS Art. V 
Singapore 01.01.01 Goods & Services 2001  GATT Art. XXIV & GATS Art. V 
Table V.1 (Cont'd) WT/REG306/1 
Page 38  
 
  Partner / Agreement Date of 
entry  
into force Type of 
agreement GATT/WTO Notification 
Year WTO Provision 
Australia (ANZCERTA) 01.01.89 
01.01.83 Services 
Goods 1995 
1983 GATS Art. V 
GATT Art. XXIV 
SPARTECA 01.01.81 Goods 1981 Enabling Clause 
MALAYSIA  
India 01.07.11 Goods & Services 2011 Enabling Clause & GATS V 
ASEAN - Rep. of Korea 01.01.10 (G) 
01.05.09 (S) Goods & Services 2010 Enabling Clause & GATT Art. XXI V
GATS Art. V 
ASEAN-Australia/New Zealand 01.01.10 Goods & Se rvices 2010 GATT Art. XXIV & GATS Art. V 
ASEAN - India 01.01.10 Goods 2010 Enabling Clause 
ASEAN - Japan 01.12.08 Goods 2009 GATT Art. XXIV 
Pakistan 01.01.08 Goods & Services 2008 Enabling Clause & GATS V 
Japan 13.07.06 Goods & Services 2006  GATT Art. XXIV & GATS Art. V 
ASEAN-China 01.01.05 (G) 
01.07.07 (S) Goods & Services 2005 (G) 
2008 (S) Enabling Clause 
GATS Art. V 
ASEAN Free Trade Area 28.01.92 Goods 1992 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Chile Not provided.  Not notified  
 
SPARTECA:  South Pacific Regional Trad e and Economic Cooperation Agreement. 
GSTP:  Global System of Trade Pr eferences among developing countries. 
 
Source: WTO Secretariat.  
 
H. GOVERNMENT PROCUREMENT  
148. There are no provisions on government procurement in the Agreement.  
I. INTELLECTUAL PROPERTY RIGHTS  
149. Under Chapter 11, intellectual property rights re fer to copyright and related rights, trade 
marks, geographical indications, industrial designs, pa tents, layout designs of integrated circuits and 
plant variety rights as described in the WTO TRIPS Agreement.  The Parties recognize the 
importance of such rights in promo ting economic and social developmen t and also the need to achieve 
a balance between the rights of right holders and th e legitimate interests of users and the community 
with regard to protected subject matter.  Thus, the Parties commit to maintaining transparent IPR 
regimes and systems that provide for the prot ection and enforcement of IPRs and facilitate 
international trade through the dissemination of id eas, technology and creative works (Article 11.2).  
The WTO TRIPS Agreement is incorporated into a nd made part of the Agreement mutatis mutandis 
and the Parties reaffirm their commitments to the provisions of the TRIPS Agreement and any other multilateral agreement on IPRs to whic h they are party (Article 11.3). 
150. The Parties agree to cooperate further on notif ications and exchange of information on any 
new laws on IPRs or changes to existing laws , initiatives to promote awareness of IP rights and 
systems and to protect traditional knowledge as well as enforcement of their respective laws on IPRs 
(Article 11.4 and 11.5).  They sh all designate contact points to fac ilitate such co-operation and also 
maintain a policy dialogue on initiatives for the im provement of enforcement of IPRs in multilateral 
and regional fora.  The contact points for New Zeal and are the Intellectual Property Policy Group in 
the Ministry of Business, Innovation and Employme nt for matters concerning intellectual property 
policy, including the protection of copyright a nd Intellectual Property Office (New Zealand) for  WT/REG306/1 
 Page 39 
 
 
  matters concerning the administration of the patents, designs and trade marks registers39;  and for 
Malaysia the Director for Enforcement, Ministry  of Domestic, Trade, Cooperatives and Consumerism 
for matters concerning intellectual property policy, including the protection of copyright.  The Parties 
also commit to establishing appropriate measures fo r the protection of traditional knowledge subject 
to their international obligations and to protect c onsumers from deceptive practices or the use of false 
or misleading descriptions in trade including fal se, deceptive or misleading labelling practices which 
may or is likely to create an erroneous impression ab out the character, composition, quality or origin, 
including country of origin, of a product (Article 11.6 and 11.7).  A Party may, at any time, request 
consultations with the other Party's contact point, to seek information or clarification on IP issues between the Parties.  Such consultations will comme nce within 60 days of the request unless mutually 
determined otherwise.  If the consu ltations fail to resolve the issue, the requesting Party may refer it to 
the Joint Commission for consideration (Article 11.8). 
J. O
THER PROVISIONS  
1. Competition policy 
151. Promoting and maintaining competition to e nhance economic efficiency and consumer 
welfare is recognized as being strategically important by the Parties.  In this regard, to the extent that 
a Party already has a competition law or sector specific  regulations in place, they shall be consistent 
with competition principles.40  Where generic or relevant sectoral competition laws are in force, the 
Parties shall ensure that all commercial activities are subject to such laws, except for specific 
measures or sectors that the Parties may choose to exclude from general competition laws, provided that the exemptions are transparent and on national policy or public interest grounds.  The Chapter on 
competition does not require a Party to adopt specific measures to address anti-competitive practices 
or prevent it from withdrawing such measures;  it also does not prevent a Party from adopting policies 
in other fields, for example to promot e economic development (Article 12.2). 
152. The Parties agree to endeavour to exchange information and explore the scope for further 
co-operation on competition matters especially for issues or matters that adversely affect their 
economies.  They also agree on technical co-ope ration to control anti-competitive activities which 
may include exchanging information on formulati ng and enforcing competition law and policy and 
public information on competition law and policy, exchanging officials for training purposes and 
assistance from consultants and experts from New Zealand to the Malaysian Ministry of Domestic Trade, Cooperatives and Consumerism in informati on sharing on competition policy and law (Article 
12.3).  Although the Parties may request discussions  at any time with each other on the development 
of any new measures to control anti-competitive practices that may affect their economic 
development, or anti-competitive practices adversely affecting economic development of either Party 
within the scope of the Chapter, the Chapter is not  subject to the dispute settlement provisions of the 
Agreement (Article 12.4 and 12.5). 
2. Economic Cooperation 
153. In addition to co-operation provisions under va rious Chapters, Chapter 13 of the Agreement 
provides for co-operation between the Parties to expand and enhance its benefits and to promote 
                                                      
39 The New Zealand Ministry of Business, Innovation and Employment was formed on 1 July 2012, 
bringing together four separate Government departments:  the Ministry of Economic Development, the Department of Building and Housing, the Department of Labour and the Ministry of Science and Innovation. 
40 The Parties clarify that competition law and policy is based on economic principles and concepts, 
particularly the notion that resources are allocated effi ciently in competitive markets.  Competition is the means 
to an end with generic competition law, such as in New Zealand, having the objective of promoting competition 
for the long-term benefit of consumers. WT/REG306/1 
Page 40  
 
  capacity building in areas of mutual interest, ta king into account existing economic co-operation.  
Close co-operation will aim inter alia at furthe ring development objectives in accordance with the 
applicable laws and regulations of the Parties;  complementing existing and building new, cooperative 
relationships between the Parties;  advanc ing human resource development, creating new 
opportunities for trade and investment, promo ting competitiveness and innovation including the 
involvement, where appropriate of the private sector;  contributing to the role of the private sector in 
promoting and building strategic alliances to enc ourage mutual economic growth and development;  
encouraging through co-operation the presence of the Parties and their goods and services in 
each others' markets;  and increasing and deepen ing co-operation in areas of mutual interest 
(Article 13.1). Annex 8 provides an illustrative list of areas of co-operation which can be expanded 
through discussions in the Economic Co-operatio n Committee established by the Agreement under 
Article 13.4 which is to be chaired by officials of  the governments of the Parties and is to take 
decisions by consensus between them.
41  The Committee is to meet within  a year of entry into force of 
the Agreement and then annually, or as mutually determ ined by the Parties.  It has not yet met but is 
scheduled to do so ahead of the inaugural Jo int Commission meeting later in 2012.     
154. The Chapter on Economic Cooperation is not subj ect to the dispute settlement provisions of 
the Agreement (Article 13.6). 
3. Environment 
155. The Parties signed a side agreement on Enviro nmental cooperation to the Agreement.  Its 
objectives are to improve their understanding of e ach others' environment systems, policies and 
practices, their capacities and capabilities, including that of relevant stakeholders through co-
operation and dialogue and implement commitments ta ken by them to improve their environment.  
They also reaffirm their intention to continue to  pursue high levels of e nvironmental protection and 
fulfil their international commi tments on the environment.42  They agree that while ensuring that their 
laws, regulations, policies and practices are in ha rmony with their international environmental 
commitments, they will respect each others' sovere ign rights to set their own policies and national 
priorities, and set, administer and enforce th eir own environmental la ws and regulations.  
Nevertheless, each Party shall ensure that its envi ronmental legislation and practices will not be used 
for trade protectionist purposes or seek to encourage or gain trade or investment advantage by weakening or failing to enforce or administer envi ronment laws, regulations, policies and practices in 
a manner affecting trade between the Parties. 
156. Further commitments in Article 3 encourage co -operation through interaction of Government, 
industry, educational and research institutions in th e Parties.  Where appropriate, each Party may also 
invite participation by non-governmental sectors and other organizations in identifying potential areas 
for co-operation and undertaking cooperative act ivities as mutually agreed.  The Parties will 
encourage and facilitate, where appropriate collabor ative research on subjects of mutual interest, 
exchange of environment experts and manageme nt personnel and of technical information and 
publications, workshops and exchange of best practices, or any other modes of co-operation agreed by 
them.  Such co-operation will take  into consideration each Party's environmental priorities and needs 
as well as the resources available.  The Parties sha ll exchange their initial lists of priorities for 
co-operation.  The Parties indicate that the initial lis ts were exchanged ahead of the first meeting of 
the Environment Committee in March 2012.  The Co mmittee subsequently agreed that priority areas 
                                                      
41 The list aims at co-operation in education, forestry, health, biotechnology, agritechnology, and 
manufacturing (marine design, construction, repair and maintenance, oil spill technology, aviation and 
construction) (Annex 8 to the Agreement).  
42 These include specifically the Ea rth Summit at Rio de Janeiro in 1992 and the World Summit on 
Sustainable Development in 2002 in Johannesburg, as well as other commitments by the Parties in multilateral 
environment agreements.  WT/REG306/1 
 Page 41 
 
 
  for co-operation in 2012-2014 are climate change, water resources management, renewable energy, 
and biodiversity conservation. 
157. To facilitate co-operation national contact points ar e to be designated by the Parties.  They are 
the International Co-operation Unit in the Ministry of Environment for New Zealand and the International Unit of the Ministry of Natural Reso urces and Environment for Malaysia.  In addition, 
an Environment Committee is to be established co mprised of senior officials from the Parties' 
government agencies responsible for environment rela ted matters.  The Committee is to meet within 
the first year from the date of entry into force of the Agreement on Environmental Co-operation and 
subsequently as agreed by the Parties.  It may establish working groups to discuss environmental 
issues as required.  The Committee is also require d to review the operation and outcomes of the 
agreement on environmental cooperati on following three years of entry into force, including if it 
wishes, through consultations with stakeholders and relevant experts in each Party, including 
permitting them to atte nd its meetings.   
158. Differences over the interpretation or operation of the Agreement shall in good faith be 
resolved amicably through dialogue consultation an d co-operation.  Consultations may be requested 
with each other through their respective national cont act points and shall commence within 30 days of 
a Party's request unless otherwise agreed.  If consu ltations fail, either Party may request that the 
Environment Committee be convened to assist in re solving the issue.  The Committee will meet no 
later than 90 days following the request and produ ce a report which may be made public with its 
conclusions and recommendations.  The Parties shall implement the conclusions and recommendations as soon as practicable (Article 5). 
4. Labour 
159. The New Zealand-Malaysia Agreement on La bour Co-operation entered into force on 1 
August 2010.  It aims to promote and achieve a be tter understanding of the Parties' labour systems, 
policies and practices, facilitate an improvement in their capacities and capabilities, including the 
relevant stakeholders, participate in a forum to di scuss and exchange views on labour issues of mutual 
interest or concern with a view to reaching consensus on these issues, promote the improvement of 
working conditions and quality of life of their wo rkers, facilitate co-operation and dialogue to 
strengthen their broader relationship, promote a better understanding and observance of the ILO 
Declaration of Fundamental Principles and Rights at Work and the Follow up to the Declaration 
(1998), and improve the developmen t and management of human capital for enhanced employability, 
business excellence and greater productivity for the benefit of workers and employers. 
160. The Parties commit to work actively to ensure  their labour laws, regulations, policies and 
practices are in keeping with their respective international labour commitments including a 
reaffirmation of the principles of the ILO Declaration of Fundamental Principles and Rights at Work and the Follow up to the Declaration (1998).  Although they respect each others' sovereign right to set 
their own policies and national priorities and to set, administer and enforce their own labour laws and 
regulations, each Party is to ensure that its laws, regulations, policies and practices shall not be used 
for trade protectionist purposes and not seek to enco urage or gain trade or investment advantage by 
weakening or failing to enforce their labour legislatio n in a manner affecting mutual trade.  They will 
also promote public awareness of labour legislation domestically and endeavour to ensure that the 
processes and institutions for their operation and enfo rcement are fair and equitable (Article 2).  
Taking account of their national priorities and ava ilable resources, they agree to cooperate on 
mutually agreed labour issues and as appropriate, i nvite participation by re levant stakeholders and 
other organizations in identif ying potential areas for co-operati on and undertaking cooperative 
activities as mutually agreed.  They will also en courage and facilitate co llaborative research and 
development on subjects of mutual interest, excha nge labour experts and ma nagement personnel, as 
well as technical information and publications, work shops and exchange of best practices, or any WT/REG306/1 
Page 42  
 
  other modes of co-operation as mutually agreed.  Su ch co-operation will take into consideration the 
Parties' labour priorities and needs and the resour ces available.  As a firs t step, the Parties will 
exchange lists of their initial priorities. The Pa rties indicate that although potential areas for co-
operation were discussed at a preliminary meeting of officials in June 2010, lists of priorities have not 
yet been exchanged. 
161. To facilitate communication, each Party will designate a national contact point for labour 
matters.  These are the Principal Advisor, Intern ational Labour Group in the Ministry of Business, 
Innovation and Employment for New Zealand and the Undersecretary of the International Division, 
Ministry of Human Resources for Malaysia.  In  addition they will establish a Labour Committee 
which may include senior officials of their Govern ment agencies responsible for labour matters.  The 
Committee will meet within one year of the date of entry into force of the Agreement and as mutually 
agreed thereafter.  It may establish working gr oups to discuss labour issues as required.  The 
Committee has not yet met although the Parties have  had opportunities for discussion in the margins 
of other meetings.   WT/REG306/1 
 Page 43 
 
 
  ANNEX I 
 
Market access indicators 
  
1. A comparison of the scheduled elimination of tariffs under the Agreement is shown in Tables 
AI.1 and AI.2 below for New Zealand and Malays ia respectively by total, agricultural and non-
agricultural products.  At the time when the Agre ement entered into force 59.6% of New Zealand's 
tariff was duty free on an MFN basis, of which 65.3% for agriculture and 58.7% of non-agricultural products are duty free.  With the entry into force of the Agreement in 2010, New Zealand liberalized 
84.6% of the tariff for imports from Malaysia, of  which 98.1% for agriculture and 82.5% for non-
agriculture.  Malaysian exporters as a result benef it from an average margin of preference of 56.5% 
overall, of which 94%% for agricultural exports and 54.2% for non-agricultural exports.  By the end 
of implementation in 2016 100% of  New Zealand's tariff will be duty free for imports from Malaysia. 
Table AI.1 
New Zealand: Indicators of MFN tariff rates a nd preferential rates for imports from Malaysia 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 2.3 5.7 59.6 1.7 5.0 65.3 2.4 5.8 58.7 
Malaysia 2010 1.0 6.6 84.6 0.1 5.0 98.1 1.1 6.6 82.5 
 2011 0.9 5.9 84.6 0.1 4.5 98.1 1.0 5.9 82.5 
 2012 0.7 7.5 90.2 0.1 5.0 98.7 0.8 7.5 88.8 
 2013 0.7 7.5 90.5 0.1 5.0 98.7 0.8 7.6 89.2 
 2014 0.7 7.3 90.6 0.1 4.7 98.7 0.8 7.3 89.3 
 2015 0.0 4.5 99.3 0.0 5.0 99.9 0.0 4.5 99.2 
 2016 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
 a WTO Definition. 
 Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by New Zealand. 
2. In 2010, when the Agreement entered into fo rce 63.8% of Malaysia's MFN tariff was duty 
free, of which 71.4% of agricultural and 62.8% of non-agricutlural tariff lines were duty free.  When 
the Agreement entered into force, Malaysia liber alized 67.5% of its overall lines for imports from 
New Zealand, of which 82.4% for agricultural pr oducts and 65.6% for non-agricultural products.  As 
a result New Zealand exporters benefited from an av erage margin of preference of 28.3%, 58.3% for 
agricultural products and 26.6% for non-agricultural products.  By the end of implementation, 99% of 
Malaysia's tariff will be duty free for imports fro m New Zealand, of which 93.5% for agricultural 
products and 93.6% for non -agricultural products.  
Table AI.2 
Malaysia:  Indicators of MFN tariff rates and preferential rates for imports from New Zealand 
Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2010 6.0 16.7 63.8 2.8 10.7 71.4 6.4 17.2 62.8 
New 
Zealand 2010 
4.3 13.5 67.5 1.4 9.5 82.4 4.7 13.7 65.6 
 2011 2.5 9.5 73.1 1.1 10.7 87.3 2.7 9.4 71.3 
 2012 1.1 9.3 87.3 0.7 12.2 91.3 1.2 9.1 86.8 
 2013 0.5 7.7 93.4 0.7 11.9 91.4 0.5 7.2 93.6 
Table AI.2 (Cont'd) WT/REG306/1 
Page 44  
 
  Origin of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Average applied 
tariff Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
 2014 0.5 7.6 93.4 0.7 11.9 91.4 0.5 7.1 93.6 
 2015 0.4 6.1 93.4 0.7 11.8 91.4 0.3 5.4 93.6 
 2016 0.1 16.0 99.0 0.6 16.4 93.5 0.0 15.4 99.7 
 
a WTO Definition. 
Note: For tariff lines subject to TRQs, on ly the out-of-quota duty is included in the tariff-related calculations; for the calc ulation of  
 averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates based on data provided by Malaysia. 
 
3. Tables AI.3 and AI.4 respectively, show market access for Malaysia's and New Zealand's top 
25 exports in each others' markets.  Malaysia's  top 25 exports accounted for 47.6% of its global 
exports during 2007-09 and covered 88 tariff lines.  Of these 70 were already duty free on an MFN 
basis.  New Zealand liberalized the remaining 18 lin es upon entry into force of the Agreement in 2010 
as a result of which all top 25 of Malaysia's exports  have duty free access to the New Zealand market.  
New Zealand's top 25 exports accounted for 52.5% of  its global exports durin g 2007-09 and covered 
96 tariff lines.  Of these 81 were duty free on an MF N basis. Of the 15 dutiable lines, 3 became duty 
free upon entry into force of the Agreement, accounting for 8.1% of New Zealand's global exports.  Further liberalization is to take place in 2012 (6 lines) and 2013 (1 line);  once implementation is 
complete 2 lines relating to wine are to remain dutiable. 
Table AI.3 – New Zealand: Market access opportuniti es under the agreement for Malaysia's top 25 exports 
Malaysia's top export products in 2007-2009 Access Conditions to New Zealand's import markets 
MFN (2010) 
Duty-free in 
2010 Avg. applied 
rate 
(%) Number of tariff lines 
HS number and description of the product  Share in global 
exports (%)  Duty-
free Dutiable  
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 5.7 0.0 1   
271111 -- natural gas 5.5 0.0 1   
151190 - other 4.8 0.0 1   
854231 -- processors and controllers, whether or 
not combined with memories, converters, logic circuits, amplifiers, clock and 
timing circuits, or other circuits 3.4 0.0 1   
847330 - parts and accessories of the machines of 
heading 84.71 2.7 0.0 1   
847130 - portable automatic data processing 
machines, weighing not more than 10 kg, consisting of a least a central processing 
unit, a keyboard and a display 2.7 0.0 1   
271019 -- other 2.5 1.1 30 8 8 
854239 -- other 2.1 0.0 1   
852990 - other 1.6 2.8 4 5 5 
847170 - storage units 1.5 0.0 1   
851770 - parts 1.5 1.7 4 2 2 
854232 -- memories 1.4 0.0 1   
271011 -- light oils and preparations 1.2 0.0 2   
854233 -- amplifiers 1.2 0.0 1   
844399 -- other 1.2 1.7 2 1 1 
847180 - other units of automatic data processing 
machines 1.1 0.0 1   
Table AI.3 (Cont'd) WT/REG306/1 
 Page 45 
 
 
  Malaysia's top export products in 2007-2009 Access Conditions to New Zealand's import markets 
MFN (2010) 
Duty-free in 
2010 Avg. applied 
rate 
(%) Number of tariff lines 
HS number and description of the product  Share in global 
exports (%)  Duty-
free Dutiable  
400122 -- technically specified natural rubber 
(tsnr) 1.0 0.0 1   
851762 -- machines for the reception, conversion 
and transmission or regeneration of voice, images or other data, including switching and routing apparatus 1.0 0.6 7 1 1 
401519 -- other 1.0 0.0 2   
151110 - crude oil 0.9 0.0 1   
151620 - vegetable fats and oils and their 
fractions 0.9 1.7 2 1 1 
854129 -- other 0.8 0.0 1   
854290 - parts 0.7 0.0 1   
852872 -- other, colour 0.7 0.0 1   
854190 - parts 0.7 0.0 1   
Total of above  47.6  70 18 18 
 
Note: Based on HS 2007 nomenclature.  
Source : WTO estimates based on data provided by New Zealand and UNSD, Comtrade database. 
Table AI.4 – Malaysia:  Market access opportunities under the agreemen t for New Zealand's top 25 exports 
New Zealand's top export products in 2007-2009  Access Conditions to Malaysia's import markets
MFN (2010)
Duty-free in  
Remain dutiable  
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff linesDuty-free 
Dutiable 
2010 
2011 2012 
2013 
040221 -- not containing added sugar or other 
sweetening matter 7.8 0.0 1       
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 4.9 2.5 1 1 1     
020230 - boneless 3.6 0.0 1       
020442 -- other cuts with bone in 3.3 0.0 1       
040210 - in powder, granules or other solid forms, 
of a fat content, by weight, not exceeding 1.5% 3.2 0.0 1       
040690 - other cheese 2.6 0.0 1       
760110 - aluminium, not alloyed 2.5 0.0 1       
081050 - kiwifruit 2.3 15.0  1 1     
040510 - butter 2.3 0.0 1       
220421 -- in containers holding 2 l or less 2.1 0.0  2     2 
440320 - other, coniferous 1.9 0.0 24       
440710 - coniferous 1.8 0.0 24       
040490 - other 1.5 0.0 2       
040590 - other 1.4 0.0 4       
020422 -- other cuts with bone in 1.3 0.0 1       
350110 - casein 1.3 0.0 1       
020443 -- boneless 1.2 0.0 1       
210690 - other 1.1 9.1 5 6   6   
190190 - other 1.1 2.1 6 3  3    
710812 -- other unwrought forms 1.0 0.0 1       
510121 -- shorn wool 1.0 0.0 1       
350190 - other 0.9 12.5 1 1    1  
080810 - apples 0.9 5.0  1 1     
470321 -- coniferous 0.7 0.0 1       
020890 - other 0.7 0.0 1       
Total of above 52.4  81 15 3 3 6 1 2 
Note: Based on HS 2007 nomenclature. 
 
Source : WTO estimates based on data provided by Malaysia and UNSD, Comtrade database. WT/REG306/1 
Page 46  
 
  ANNEX II 
 
 
Table II.1: Tariff rate quotas mainta ined by Malaysia under the Agreement 
HS Code Product Annual quota volume In quota 
tariff rate 
(%) Out of quota 
tariff rate (%) Current 
MFN rate 
040110110 Of fat content, by weight, not exceeding 
1%: milk:  liquid 200,000 litres in 2010, 
rising annually to 
238,810 litres by 2016 Zero 20% 50% 
040120110 Of fat content, by weight, exceeding 1% 
but not 6%:  milk: liquid 1,700,000 litres in 
2010, rising annually 
to 2,278,163 litres by 2016 Zero 20% 50% 
040130110 Of fat content, by weight, exceeding 
6%:  milk: liquid 200,000 litres in 2010 
rising to 238,810 litres annually by 2016 Zero 20% 50% 
040700111 Other:  Hens eggs 300,000 in 2010 rising 
annually to 358,216 by 2016 Zero 10% 50% 
010391000 Live swine, weighing less than 50 kgs 100 head in 2010 
rising annually to 106 head by 2016 Zero 15% 20% 
010392000 Live swine, weighing 50 kgs or more 100 head in 2010 
rising annually to 106 by 2016 Zero 15% 20% 
010511900 Day old chicks of the species gallus 
domesticus weighing not more than 185 grammes 200,000 head in 2010, 
rising annually to 212,304 head by 2016 Zero 10% 20% 
020311000 Meat of swine, fresh or chilled-- 
carcasses and half-carcasses 500 kgs in 2010 rising 
annually to 531 kgs by 2016 Zero 25% 50% 
020321000 Meat of swine, frozen-- carcasses and 
half carcasses 4,000 kgs in 2010 
rising annually to 
4,246 kgs by 2016 Zero 25% 50% 
020711000 Meat of fowls of the species G.  
Domesticus not cut in pieces, fresh or 
chilled 250 kgs in 2010 rising 
annually to 265 kgs by 
2016 Zero 20% 40% 
020712000 Meat of fowls of the species G. 
Domesticus not in pieces, frozen 30,000 kgs in 2010 
rising annually to 
31,846 kgs by 2016 Zero 20% 40% 
020714000 Edible cuts and offals of the species G. 
Domesticus, frozen 16,500 kgs in 2010 
rising annually to 
17,515 kgs by 2016 Zero 20% 40% 
040700112 Ducks eggs in shell for hatching 300,000 in 2010 rising 
annually to 318,456 by 
2016 Zero 10% 50% 
040700910 Other:  Hens eggs 4 million in 2010, 
rising annually to 
4,246,081 by 2016 Zero 10% 50% 
040700920 Ducks eggs in shell, preserved or 
cooked--other 5 million in 2010 
rising annually to 
5,307,601 by 2016 Zero 10% 50% 
 
Source:  Table 1 and 2 Annex 1 of the Agreement. 
__________