WT/REG340/1  
14 April 2014  
(14-2325)  Page: 1/42  
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN AUSTRALIA AND MALAYSIA  
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Australia and Malaysia has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The report has been drawn up 
in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel: +41 22 739 5422). Any statistical questions arising from 
this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG340/1 
 
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TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 9  
2.1   Background  Information ............................................................................................. 9  
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 10  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 10 
3.1.1   Genera l provisions ................................................................................................. 10 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 11 
3.1.3   Liberalization  schedule by  product ............................................................................ 12 
3.2   Tariff rate quotas ...................................................................................................... 14 
3.3   Malaysian imports of Au stralian alcoho lic beverages ...................................................... 15 
3.4   Rules of origin .......................................................................................................... 16 
3.5   Export duties and charges,  and quantitative  restrictions ................................................. 17 
3.6   Regulatory provisions on trade in goods ....................................................................... 17 
3.6.1   Standards ............................................................................................................. 17 
3.6.2   Safeguard mechanisms ........................................................................................... 18 
3.6.3   Anti-dum ping measures .......................................................................................... 19 
3.6.4   Subsidies and co untervailing measures ..................................................................... 19 
3.6.5   Customs-re lated procedures .................................................................................... 19 
3.7   Sector-specific provis ions on trad e in goods ................................................................. 20 
4   PROVISIONS ON TRADE IN SERVICES AND IN VESTMENT ......................................... 20  
4.1   Scope and definitions ................................................................................................ 20 
4.2   Denial of benefits ..................................................................................................... 21 
4.3   General provisions on trade in services ........................................................................ 21 
4.3.1   Mark et acce ss ....................................................................................................... 21 
4.3.2   National treatment and MFN .................................................................................... 21 
4.3.3   Commercial presence ............................................................................................. 22 
4.3.4   Movement of  natural persons .................................................................................. 22 
4.4   Other measures  on inve stment ................................................................................... 24 
4.5   Liberalization commitments ........................................................................................ 25 
4.5.1   Australia ............................................................................................................... 25 
4.5.2   Malaysia .............................................................................................................. . 27 
4.6   Regulatory provisions ................................................................................................ 29 
4.6.1   Domestic regulation ............................................................................................... 29 
4.6.2   Recognition ........................................................................................................... 30 
4.6.3   Subsidies .............................................................................................................. 30 
4.6.4   Safeguards ........................................................................................................... 30 WT/REG340/1 
 
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 4.7   Sector specific provis ions on trade in services ............................................................... 31
 
4.7.1   Financial Services .................................................................................................. 31 
4.7.2   Telecommunications ............................................................................................... 31 
4.7.3   Electronic Commerce .............................................................................................. 32 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 33  
5.1   Tran sparency ........................................................................................................... 33 
5.2   Current payments and capital movements .................................................................... 34 
5.3   Exceptions ............................................................................................................... 34 
5.4   Accession and Withdrawal .......................................................................................... 34 
5.5   Institutio nal framework ............................................................................................. 34 
5.6   Disput e settlement ................................................................................................... 34 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 36 
5.8   Government  procurement .......................................................................................... 37 
5.9   Competition .............................................................................................................  37 
5.10   Intellectual property rights ....................................................................................... 37 
5.11   Economic and Te chnical Coop eration ......................................................................... 38 
5.12   Environm ental Issues .............................................................................................. 39 
5.13   Labour Provisions ................................................................................................... 39 
ANNEX 1 ....................................................................................................................... . 40 
 WT/REG340/1 
 
- 4 - 
 
  
Key Facts 
 
Parties to the Agreement:  Malaysia and Australia 
 
Date of Signature:   22 May 2012 
 
Date of Entry into Force: 1 January 2013 
 
Date of Notification:  13 May 2013 
 
Full implementation :  1 January 2026 
 
 
1  TRADE ENVIRONMENT 
1.1  Merchandise trade 1.1.  The Free Trade Agreement between Australia  and Malaysia, Goods and Services, (hereafter 
"the Agreement") is the ninth RTA notified by Australia to the WTO and the sixth bilateral RTA 
notified by Malaysia. Australia and Malaysia already benefit from preferential trading relations through the ASEAN-Australia-New Zealand FTA which entered into force in January 2010.  
1.2.  In 2012, Australia's GDP was estimated at US$1,521 billion, while that of Malaysia was 
US$304 billion. In the same year, Australia's merchandise exports amounted to US$257 billion 
(1.39% of global exports), while imports amounted  to US$261 billion (representing 1.4% of global 
imports).
1 In the same year, Malaysia's merchandise exports amounted to US$227 billion, 
representing 1.24% of global exports, while im ports amounted to US$197 billion and represented 
1.06% of global imports.2 The structure of their merchandise exports and imports are different, 
with Australia exporting mainly fuels and mining products while Malaysia exports mainly 
manufactures. Agricultural exports of both countries account for a similar share of total exports.  
1.3.  Charts 1.1A and 1.1B show global and bila teral trends in merchandise trade for the Parties 
for the period 2000-2012. Australia's merchandise tr ade has expanded at a considerable rate, with 
imports rising from US$70 billion in 2002 to US$250 billion in 2012, and exports from 
US$65 billion to US$256 billion.3 After falling in 2009, trade recovered sharply, though exports for 
2012 are down slightly compared to the previous year. From 2000 to 2009, Australia ran a slight trade deficit which has become a growing surplus since 2010 that has contracted in 2012. 
Malaysia's total imports and exports rose stea dily from 2000 to 2008 with the trade surplus 
widening slightly over the period as the growth in exports outpaced that in imports. Trade fell sharply in 2009, but picked up in 2010 with imports reaching US$196 billion and exports 
US$227 billion in 2012.
4 Bilateral trade expanded considerably during this period. Australia's 
exports to Malaysia increased from $1.4 billion in 2000 to $5.3 billion in 2012, while Malaysia's exports to Australia increased from $2.4 billion to $9.4 billion over the same period.
5 Malaysia has 
run a consistent and growing trade surplus with Australia over the period 2000 to 2012. 
1.4.  The commodity structure of trade among the Parties, as well as of their imports and exports 
to the world in the period 2010-2012, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections. Over the period 2010-2012, Australi a's four largest export product categories – 
minerals, precious stones, base metals and chemicals – made up 74.7% of its total exports and 
accounted for 63.1% of Malaysia's imports from Australia. Over the same period, Malaysia's four largest export product categories – machinery, mi nerals, animal or vegetable fats and plastics – 
made up 73.8% of its total exports and accounted for 80.8% of Australia's imports from Malaysia. 
                                               
1 Source: WTO Trade Profiles, September 2013. 
2 Ibid. 
3 Source: UN Comtrade. 
4 Ibid. 
5 Ibid. WT/REG340/1 
 
- 5 - 
 
 Chart 1.1 Australia and Malaysia: Merchandise bilateral trade and with world  
05101520
0100200300
2000 2002 2004 2006 2008 2010 2012B. Australia 2000-2012
(US$ billions)
Imports from Malaysia (Right Axis)
Exports to Malaysia (Right Axis)
Total Imports
Total Exports
05101520
0100200300
2000 2002 2004 2006 2008 2010 2012A. Malaysia 2000-2012 
(US$ billions)
Imports from Australia (Right Axis)
Exports to Australia (Right Axis)
Total Imports
Total Exports
 
 
Source: UNSD Comtrade database. 
 
Chart 1.2 Australia and Malaysia: product composition of merchandise trade, annual 
average (2010-2012)  
34
22987759Malaysia imports from Australia (%)
40
131076533328Malaysia's Global Imports (%)
57
765553211Australia's Global Exports (%)
46
2843322227Australia's imports from Malaysia (%)
25
16
14954443389Australia's Global Imports(%)
39
1897553229Malaysia's Global Exports(%)Total: US$ 4.0 billion Total: US$ 183 billion
Total: US$ 224 billionTotal: US$ 218 billionTotal:  US$ 244 billion
Total: US$ 8.8 billion
Animal 
products
Vegetables
Vegetable 
fats & oilsChemicalsPlastics
Wood& articles 
of woodPrecious 
stones
Base 
metalsVehicles
OpticalOther
MiscellaneousPrepared 
foods
Machinery TextilesMinerals
 
 
Source: UNSD Comtrade database. WT/REG340/1 
 
- 6 - 
 
 1.2  Trade in services and investment 
1.5.  Charts 1.3 and 1.4 depict the Parties' trade flows in services with each other and the world 
and by type of activity for 2008-2012. Services exports from Australia amounted to US$52 billion 
in 2012 accounting for 1.19% of world exports, an d imports to US$63 billion accounting for 1.52% 
of world imports. For Malaysia, exports amounted  to US$38 billion (0.86% of world exports), and 
imports to US$42 billion (1.01% of world imports). 
1.6.  In 2012, travel services accounted for 42.6% of Australia's global services imports, followed 
by transport services (26.7%) and other business services (15.6%). These categories were also 
those with the largest export shares, accounting, respectively, for 60.9%, 12.3% and 15.6% of its global services exports. In terms of bilateral tr ade with Malaysia, Australia has run a growing trade 
surplus with Malaysia over the period. In 2012, travel services accounted for 78.3% of Australia's 
exports to Malaysia, followed by transport servic es (7.6%) and other business services (5.5%).  
Chart 1.3 Australia trade in services da ta with Malaysia and world, 2008-2012 
0.00.51.01.52.02.53.0
2008 2009 2010 2011 2012A. Australia imports from Malaysia
2008-2012
(US$ Billion) 
0.00.51.01.52.02.53.0
2008 2009 2010 2011 2012B. Australia exports to Malaysia
2008-2012
(US$ Billion) 
01020304050607080
2008 2009 2010 2011 2012C. Australia imports from world
2008-2012
(US$ Billion) 
01020304050607080
2008 2009 2010 2011 2012D.Australia exports  to world
2008-2012
(US$ Billion) 
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension services
Financial services
Charges for the use of intellectual 
property n.i.e.Telecom, computer and information services
Other business servicesConstruction services
Personal, cultural and recreational services
 
 
Source: Australian author ities (based on BMP6). 
 
1.7.  In 2012, Malaysia's main global export categories were transportation services, travel 
services and other business services, accounting respectively, for 31.7%, 28.5%, and 19.9% of 
global services exports. Travel services (52.1%), other business services (21.3%) and 
transportation services (11.4%) were also Malaysia's main import sectors. In terms of bilateral trade with Australia, Malaysia has run a growing trade deficit with Australia over the period. In 2012, other business services accounted for 35.5% of Malaysia's exports to Australia, followed by 
followed by travel services (33.1%) and transportation services (21.8%).  WT/REG340/1 
 
- 7 - 
 
 Chart 1.4 Malaysia trade in services data with Australia and world 
0.00.51.01.52.02.53.0
2010 2011 2012A. Malaysia imports from Australia
2010-2012
(US$ Billion) 
0.00.51.01.52.02.53.0
2010 2011 2012B. Malaysia exports to Australia
2010-2012
(US$ Billion) 
01020304050
2000 2002 2004 2006 2008 2010 2012C. Malaysia imports from world
2000-2012
(US$ Billion) 
01020304050
2000 2002 2004 2006 2008 2010 2012D.Malaysia exports  to world
2000-2012
(US$ Billion) 
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information 
servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesInsurance services
 
 
Source: Malaysian authorities (2010-2012) and UNCTAD.  
1.8.  Chart 1.5 depicts Australia's FDI stock and flow with Malaysia and the world. Australia is a 
net recipient of global FDI in terms of both  stocks and flows over the period analysed 
(2008-2011). FDI flows with Malaysia have increased over the period with inward flows in particular showing a sharp rise since 2009. 
1.9.  Chart 1.6 depicts Malaysia's FDI stock and flow with Australia and the world. From 2000 to 
2006 Malaysia was a net recipient of global FDI flows. Since then it has become a net and growing provider of global FDI flows. Its global FDI stock continues to register a positive inward balance but this has diminished since 2000 as outward FDI flows have increased. From 2010 to 2011 
Malaysia's FDI flows into Australia registered a sharp contraction which was slightly reversed in 
2011. Likewise, inward flows of FDI from Austra lia contracted sharply from 2010 to 2011 then 
increased slightly in 2012. 
 WT/REG340/1 
 
- 8 - 
 
 Chart 1.5 Australia: FDI stock and flow with Malaysia and world 
0100200300400500600
2008 2009 2010 2011FDI stock with world
2008-2011
(US$ Billion) 
Outward Inward
01234
2008 2009 2010 2011FDI stock with Malaysia
2008-2011
(US$ Billion) 
Outward Inward
Note: Inward stock is only available for years 2009 and 2010.
010203040506070
2008 2009 2010 2011FDI flow with world
2008-2011
(US$ Billion) 
Outward Inward
0.00.51.01.52.0
2008 2009 2010 2011FDI flow with Malaysia
2008-2011
(US$ Billion) 
Outward Inward
54.1 million
27.3 million
Note: Inward stock is only available for years 2009 to 2011. 
 
Source: Australian authorities. WT/REG340/1 
 
- 9 - 
 
 Chart 1.6 Malaysia: FDI stock and flow with Australia and world 
050100150200
2000 2002 2004 2006 2008 2010 2012FDI stock with world
2000-2012
(US$ Billion) 
Outward Inward
-5051015202530
2010 2011 2012FDI stock with Australia
2010-2012
(US$ Billion) 
Outward Inward
05101520
2000 2002 2004 2006 2008 2010 2012FDI flow with world
2000-2012
(US$ Billion) 
Outward Inward
-4.0-2.00.02.04.06.0
2010 2011 2012FDI flow with Australia
2010-2012
(US$ Billion) 
Outward Inward
 
 
Source: Malaysian authorities (bilateral) and UNCTAD.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Agreement covers goods, services and investment. It was signed by the Parties on 
22 May 2012 and entered into force on 1 January 2013.  
2.2.  The Agreement was notified to the WTO by the Parties on 13 May 2013 under 
Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (WT/REG340/N/1 and S/C/N/695). The text of the Agreement, along with its schedules  and annexes, is available on the website of the 
Parties' authorities.
6 
2.3.  The Agreement contains 21 Chapters and four separate Annexes (Box 2.1). Also included in 
the Agreement are side letters on the treatment of Malaysian imports of alcoholic beverages, and environment and labour issues. There is also an implementing arrangement containing an agreed 
work programme of economic and technical cooperation projects and a non-legally binding 
exchange of letters offering to facilitate discussions between Australian and Malaysian traditional and complementary medicine industry bodies. 
                                               
6 The text of the Agreement can be found at: 
http://www.dfat.gov.au/fta/mafta/ (Australia) and  
http://www.miti.gov.my/cms/content.jsp?id=com.tms.cms.section.Section_55b684eac0a8156f- 
2af82af8-5b2b191e (Malaysia). WT/REG340/1 
 
- 10 - 
 
 Box 2.1 Structure of the Agreement 
 Preamble 
Chapter 1 Establishment of a Free Trade Area and General Definitions 
Chapter 2 Trade in Goods 
Chapter 3 Rules of Origin  
Chapter 4 Customs Procedures and Cooperation 
Chapter 5 Sanitary and Phytosanitary Measures 
Chapter 6 Standards, Technical Regulations and Conformity Assessment Procedures 
Chapter 7 Trade Remedies 
Chapter 8 Trade in Services 
Chapter 9 Telecommunications Services 
Chapter 10 Movement of Natural Persons 
Chapter 11  Framework on Mutual Recognition Arrangements 
Chapter 12  Investment 
Chapter 13 Intellectual Property 
Chapter 14 Competition Policy  
Chapter 15 Electronic Commerce 
Chapter 16 Economic and Technical Cooperation 
Chapter 17 Transparency 
Chapter 18 General Provisions and Exceptions 
Chapter 19 Institutional Provisions 
Chapter 20 Consultations and Dispute Settlement 
Chapter 21 Final Provisions 
Annex 1  Schedules of Tariff Commitments 
Annex 2  Product Specific Rules Schedule 
Annex 3 Schedules of Specific Services Commitments 
Annex 4 Schedules of Movement of Natural Persons 
 
Source: The Agreement. 
 2.4.  Under Article 21.7 the Parties agree to review the Agreement with a view to furthering its objectives within five years of the entry into force of the Agreement and at least every five years 
thereafter, unless otherwise agreed. 
3  PROVISIONS ON TRADE IN GOODS 3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 
3.1.  Trade in goods between the Parties is governed by Chapter 2. The Parties agree to grant 
national treatment to each other's goods in acco rdance with Article III of GATT 1994 (Article 2.5). 
They agree to progressively reduce and/or elimin ate customs duties on originating goods of the 
other Party in accordance with their Schedules of Tariff Commitments contained in Annex 1 of the Agreement. The Parties may not increase an existing customs duty or introduce a new customs WT/REG340/1 
 
- 11 - 
 
 duty on imports of an originating good, other than  as permitted under the Agreement (Article 2.3). 
Upon request, the Parties shall consult to consider accelerating the reduction and/or elimination of 
customs duties. A Party may at any time unilaterally accelerate the reduction and/or elimination of customs duties and shall inform the other Party before the new rate of customs duty takes effect 
or as soon as practicable (Article 2.4). 
3.2.  Except as otherwise provided for in the Agreement, the Parties may not adopt or maintain 
any prohibition or restriction or any other non-tariff measure on the import of any good of the 
other Party except in accordance with Article XI of GATT 1994 which is incorporated into the 
Agreement, mutatis mutandis  (Article 2.10). 
3.3.  With respect to administrative fees and formalities, the Parties shall ensure that all fees and 
charges in connection with the import and export of goods are limited in amount to the 
approximate cost of service rendered and do not represent indirect protection of domestic products 
or a taxation of imports or exports for fiscal purposes. They will not require any consular transactions related to imports from the other Party. A list of the fees and charges currently 
applied in connection with import or export of goods must be available on the internet 
(Article 2.6).  
3.4.  Article X of GATT 1994 is incorporated into the Agreement, mutatis mutandis. In accordance 
with its laws and regulations and to the extent possible, the Parties shall make laws, regulations, 
decisions and rulings available on the internet (Article 2.7). 
3.5.  In customs valuation, the Parties commit to apply rules in accordance with Article VII of 
GATT 1994 and the WTO Customs Valuation Agreement (Article 2.8). 
3.6.  The Parties agree to apply all automatic and non-automatic import licensing measures in 
accordance with the Agreement on Import Licensing Procedures and commit to notify the other Party of any new or existing import licensing procedure, as well as any subsequent modification. 
Upon request, a Party shall provide information wi thin 30 days on the criteria employed by its 
licensing authorities in granting or denying import licences and shall also consider publication of such criteria (Article 2.11).  
3.7.  Malaysia has provided a commitment that no quantitative limit on imports shall apply to 
originating vehicles of HS Chapter 87 imported from Australia that may be subject to Approved Permits or any similar import licensing requirement,  and no additional charges shall be imposed on 
imports of such originating vehicles (Annex 1 – Appendix 3). 
3.1.2  Liberalization of trade and tariff lines 
3.8.  Trade liberalization covers Chapters 1- 97 of the Harmonized System (HS). Article 2.3 
provides for the progressive elimination of customs duties in accordance with the Schedules of 
Tariff Commitments in Annex 1. Tariff elimination started on 1 January 2013, and subsequent 
reductions take place on 1 January of each year. Australia eliminates customs duties on all originating goods from the date of entry into force of the Agreement. For Malaysia, tariff 
liberalization commitments are spread out over a 13 year period (2013-2026). Article 2.4 foresees 
the possibility of accelerated tariff reduction and/or elimination.  
3.9.  Table 3.1 shows tariff and trade liberalization offered by Australia to Malaysia under the 
Agreement. In 2013, 47.6% of Australia's schedule was duty free on an MFN basis, corresponding 
to 69.8% of its imports from Malaysia in 2010-2012.
7 Upon the entry into force of the Agreement, 
Australia liberalized the remaining 52.4% of lines which accounted for an additional 30.2% of its imports from Malaysia.  
                                               
7 Of the 6,185 tariff lines in Australia's schedule, 6,168 (99.73%) are subject to ad valorem duties, 5 to 
specific duties, 8 to compound du ties and 4 to mixed duties.    WT/REG340/1 
 
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 Table 3.1: Australia 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out period Number of 
lines % of total lines 
in Australia's 
tariff schedule Value of Australia's 
imports from Malaysia 
(2010-2012) 
in million US$ % of Australia's 
total imports from  
Malaysia 
2010-2012 
MFN duty free (2013) 2,944 47.6 6,144.2 69.8 
2013 3,241 52.4 2,654.6 30.2 
Total 6,185 100.0 8,798.8 100.0 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2012 nomenclature.  Source:  WTO estimates based on data from WTO- IDB and information from Australian authorities. 
 
3.10.  As shown in Table 3.2, 64.6% of Malaysia's tariff lines were duty free on an MFN basis in 
2013, corresponding to 89.7% of Malaysia's total imports from Australia in 2010-2012.8 Following 
the Agreement's entry into force, Malaysia liberalized an additional 31.5% of lines, representing 8.2% of its imports from Australia between 2010 and 2012. Liberalization continues until 2026 at 
which point 99% of tariff lines, corresponding to 99% of imports from Australia will be duty free. A 
total of 95 lines will remain subject to duties.  
Table 3.2: Malaysia 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out 
period Number of 
lines % of total lines 
in Malaysia's 
tariff schedule Value of Malaysia's 
imports from 
Australia 
(2010-2012) 
in million US$ % of 
Malaysia's 
total imports 
from  
Australia 
2010-2012 
MFN duty free (2013)  6,079 64.6 3,597.0 89.7 
2013 2,964 31.5 329.2 8.2 
2014 25 0.3 1.1 0.0 
2015 29 0.3 0.1 0.0 
2016 202 2.1 33.5 0.8 
2017 4 0.0 6.7 0.2 
2020 11 0.1 0.1 0.0 
2026 8 0.1 0.5 0.0 
Remain dutiable 95 1.0 40.3 1.0 
Total 9,417 100.0 4,008.7 100.0 
 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Product coverage is from HS chapters 1-97. 
 Based on the HS 2012 nomenclature.   Source:  WTO estimates based on data pr ovided by Malaysia and TPR database. 
 
3.1.3  Liberalization schedule by product 
3.1.3.1  Australia 
3.11.  Table 3.3 shows Australia's tariff liberalization by HS section. All lines are liberalized in 
2013. 
Table 3.3 Australia: Tariff elimination under the Agreement, by HS Section  
HS Section MFN average%  No. of lines MFN 2013 Number of duty-free lines in 2013 under 
the Agreement 
I 0.0 339 332 7 
II 0.7 314 270 44 
III 1.8 49 31 18 
                                               
8 Of the 9,417 tariff lines in Malaysia's schedule, 9,334 (99.12%) are subject to ad valorem duties, 41 
to specific duties, 40 to compound duties, and 2 to mixed duties.    WT/REG340/1 
 
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HS Section MFN average%  No. of lines MFN 2013 Number of duty-free lines in 2013 under 
the Agreement 
IV 2.6 287 139 148 
V 0.4 198 184 14 
VI 1.4 873 626 247 
VII 4.5 238 24 214 
VIII 3.6 92 29 63 
IX 3.3 143 50 93 
X 3.7 283 72 211 
XI 5.3 911 160 751 
XII 2.5 60 30 30 
XIII 3.4 161 50 111 
XIV 1.0 53 42 11 
XV 3.5 583 171 412 
XVI 2.9 953 405 548 
XVII 3.5 238 72 166 
XVIII 0.9 240 196 44 
XIX 1.6 19 13 6 
XX 3.7 144 41 103 
XXI 0.0 7 7  
Total 2.8 6,185 2,944 3,241 
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2012 nomenclature.   Source:  WTO estimates based on data from WTO- IDB and information from Australian authorities. 
 
3.1.3.2  Malaysia 
3.12.  In the case of Malaysia, the lines subject to liberalization ten or more years after the 
Agreement's entry into force fall in HS Section II (Table 3.4). Eight tariff lines (HS 1006, rice) are excluded from tariff commitments until 2022 inclus ive. From 2023 these eight lines are subject to 
phased annual tariff reductions leading to elimination in 2026.
9 The 95 lines that are not liberalized 
fall in HS Sections I, IV and XIX.  
Table 3.4 Malaysia: Tariff elimination under the Agreement, by HS Section  
HS 
Section MFN 
average 
% No. of 
lines MFN 2013  Number of  
duty-free lines 
Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2013 
2014 
2015 
2016 
2017 
2020 
2026 
I 2.2 478 425 36       17 15.9 
II 2.5 399 299 63  7 22   8   
III 2.6 171 100 70  1       
IV 2.6 478 315 86 13 6     58 5.0 
V 1.4 202 177 25         
VI 2.0 1,025 889 135   1      
VII 13.4 563 161 397   5      
VIII 0.4 82 79 3         
IX 1.4 1,511 1,389 122         
X 10.4 294 114 180         
XI 6.4 1,025 497 528         
XII 6.3 71 43 28         
XIII 17.3 188 49 113 12 14       
XIV 0.4 58 54 4         
XV 9.3 823 271 447   90 4  11    
XVI 5.0 1,140 790 349  1       
XVII 17.3 422 99 239   84      
XVIII 0.8 244 225 19         
XIX 13.6 22 2        20 15.0 
                                               
9 In addition, Malaysia has provided a commitment  that from 2023 imports into Malaysia from Australia 
for these eight lines will not be subject to any restrict ion on who can import rice, including no restriction on 
who can apply for any import licenses; any import licenses shall be issued on a first come, first-served basis, 
and there shall be no restriction on whether the product is imported in bulk or retail packs. WT/REG340/1 
 
- 14 - 
 
 
HS 
Section MFN 
average 
% No. of 
lines MFN 2013  Number of  
duty-free lines 
Remain 
dutiable Avg. Final 
Tariff 
(Dutiable) 2013 
2014 
2015 
2016 
2017 
2020 
2026 
XX 9.5 213 95 118         
XXI 1.3 8 6 2         
Total 5.6 9,417 6,079 2,964  25 29 202 4 11 8 95 12.0 
 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Product coverage is from HS chapters 1-97. 
 Based on the HS 2012 nomenclature.   Source:  WTO estimates based on data pr ovided by Malaysia and TPR database. 
 
3.13.  At the HS Chapter level, tariffs will conti nue to apply in six Chapters (Chart 3.1). In three 
Chapters, 1 (live animals), 2 (meat and edible meat offal) and 4 (dairy products) preferential 
tariffs are lower than the MFN rate as a result of tariff reductions and improved access through 
tariff rate quotas (see Table 3.5). For some products in Chapters 22, 24 and 93 no tariff 
commitments are made under the Agreement. The fi nal preferential average rates in the Chapters 
shown in Chart 3.1 range from 5% to 22%; tariffs in Chapter 22 are subject to specific rates of duty. 
Chart 3.1 Malaysia: Average of du tiable rates, by HS Chapter 
0204060
01 02 04 *22 24 93Average rate of duty (%)  
HS Chapter
MFN Preferential
 
Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
 *HS chapter 22 contains specific duties only.   Based on the HS 2012 nomenclature.  Source: WTO Secretariat estimates based on the data provided by Malaysia and TPR database. 
 
3.2  Tariff rate quotas 
3.14.  Under the Agreement, Malaysia establishes tariff-rate quotas (TRQs) for certain agricultural 
products (Annex 1 - Appendix 1).10 Malaysia applies TRQs to 17 tariff lines (Table 3.5). TRQ 
volumes increase annually in perpetuity. The import licences are to be issued on a first-come, first-
                                               
10 Malaysia did not indicate whether these TRQs are in addition to WTO TRQs. WT/REG340/1 
 
- 15 - 
 
 served basis. For products other than liquid milk there is to be no restriction on who can apply for 
a licence, except for the TRQs for 0207.11.00, 0207.12.000 and 0207.14.000. In relation to the 
liquid milk TRQs for 0401.10. 100 and 0401.20.100, 35% of each of the annual TRQ volumes are to 
be administered by an open licensing system, with no restriction on who can apply for a licence 
and no restriction on whether the product is imported in bulk or retail packs. 
3.15.  The details of quota administration for all of the TRQs are to be promptly published, 
including information on procedures for the submission of applications for licences. Quota 
administration is to be in accordance with the WTO Agreement on Import Licensing Procedures and 
Article 11 of the Trade in Goods Chapter (described above). 
Table 3.5 Malaysia: Products subject to TRQs under the Agreement 
HS Code 
(description) MFN rate in 
2013 TRQs under the Agreement 
In 
quota 
rate Out 
of 
quota 
rate In 
quota 
rate Out 
of 
quota 
rate Quantity 
in 2013 Annual increases 
(in perpetuity) 
Liquid Milk 
0401.10.100 0401.20.100 0401.40.110  
20% 20% 20%  
50% 50% 50%  
0% 0% 0%  
20% 20% 20%  
100,000 L 500,000 L 
20,600 L  
3% 9% 3% 
Live Swine 
0103.91.000 
0103.92.000  
15% 
15%  
20% 
20%  
0% 
0%  
15% 
15%  
150 head 
150 head  
1% 
1% 
Fowls 
0105.11.900  
10%  
20%  
0%  
10%  
350,500 head  
1% 
Meat of swine 
0203.11.000 
0203.21.000  
25% 
25%  
50% 
50%  
0% 
0%  
25% 
25%  
550 kg 
4,500 kg  
50% until 2019 and 5% from 2020 
8% 
Meat of fowls 0207.11.000 0207.12.000  
20% 20%  
40% 40%  
0% 0%  
20% 20%  
300 kg 
17,500 kg  
50% until 2020 and 5% from 2021 
3% 
Meat and edible 
offal 
0207.14.000  
20%  
40%  
0%  
20%  
290,500 kg  
3% 
Fertilized eggs 
0407.11.000 
0407.19.100  
10% 
10%  
50% 
50%  
0% 
0%  
10% 
10%  
100,500 units 
100,500 units  
1% 
1% 
Other eggs 
0407.21.000 
0407.90.100  
10% 
10%  
50% 
50%  
0% 
0%  
10% 
10% 4,000,500 
units  
1% 
Other eggs 0407.29.100 0407.90.200  
10% 10%  
50% 50%  
0% 0%  
10% 10%  
5,000,500 
units  
1% 
 
Source: Appendix 1 to Annex 1 of the Agreement. 
 
3.3  Malaysian imports of Australian alcoholic beverages 
3.16.  In a side letter to the Agreement, Malays ia affirms that from the Agreement's entry into 
force imports from Australia of products covered by HS heading 2204 in Malaysia's tariff schedule 
will be subject to treatment as favourable as that provided to imports of like products from any 
non-party with respect to customs duties and charges of any kind imposed on or in connection with importation, with respect to the method of levying such duties and charges, and with respect 
to the application of import licensing and other non-tariff measures. Malaysia further affirms that 
customs duties and other charges applied to items covered by HS headings, 2203, 2205, 2206, 2207 and 2208 will be subject to review two years after the Agreement's date of entry into force. 
Malaysia reserves its rights to impose tariffs on these products. WT/REG340/1 
 
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 3.4  Rules of origin 
3.17.  Chapter 3 contains provisions on rules of origin and is supplemented by Annex 2 (Product 
Specific Rules Schedule), an Annex on Operational Certification Procedures and an Appendix on Data Requirements. A good qualifies as originating if it is:  
 wholly obtained or produced in one or both of the Parties; 
 produced entirely in the territory of one or both of the Parties exclusively from 
originating materials; 
 satisfies all applicable requirements of Annex 2 as a result of processes performed 
entirely in the territory of one or both of the Parties by one or more producers; or 
 otherwise qualifies as an originating good under Chapter 3. 
3.18.  Bilateral cumulation is permitted between the Parties where a good which is treated as 
originating is used in the production of a good in the other Party. Production that occurs in the 
territory or one or both Parties counts as qualifying content in determining the origin of a good regardless of whether that production was sufficient to confer originating status on the material 
used in the production of that good (Article 3.4). 
3.19.  The Agreement provides a  de minimis  provision, under which a good qualifies as originating 
if the value of all non-originating materials used in its production which do not satisfy a change in 
tariff classification requirement in Annex 2 do not exceed 10% of the F.O.B. value of the good 
(Article 3.5). In the case of textiles and clothing (HS Chapter 50-63), an alternative to the foregoing condition is provided, i.e. if the weight of all non-originating materials used in the production of a good that did not undergo the required change in tariff classification does not 
exceed 10% of the total weight of the good (Article 3.5). 
3.20.  Articles 3.6 - 3.10 respectively contain provisions on accessories, spare parts, tools and 
instructional or other information materials; fungible materials; packaging materials and 
containers; indirect material; and minimal operations. The formula to compute the regional value 
content (RVC) is set out in Article 3.11 and details of the calculation of the value of a good or material are contained in Article 3.12. 
3.21.  A Declaration of Origin completed by the ex porter or producer as outlined in the Annex on 
Operational Certification Procedures must accompany a claim that a good should be treated as originating and accepted as eligible for preferential treatment (Article 3.15). Malaysia requires its exporters and producers to obtain a Certificate of Origin as outlined in the Annex on Operational 
Certification Procedures (though Malaysia may elect to waive the Certificate of Origin requirement 
and replace it with the Declaration of Origin requirement at any time) (Article 3.15). A Declaration of Origin may take the form of a declaration on the invoice or company letterhead. In order to 
obtain a Certificate of Origin the exporter or producer shall apply to the Issuing Authority 
requesting a pre-exportation examination of the orig in of the good to be exported. The result of 
the examination, subject to review periodically or  whenever appropriate, shall be accepted as the 
supporting evidence in issuing a Certificate of Orig in for the good to be exported thereafter. The 
Declaration of Origin or Certificate of Origin must contain the data listed in Appendix on Data Requirements adopted by the Parties. A Declaration of Origin or Certificate of Origin is not required where the total customs value of the originating goods does not exceed US$ 200 or local currency 
equivalent. 
3.22.  Provisions relating to origin verification, co nfidentiality, suspension or denial of preferential 
tariff treatment and appeal are contained in Articles 3.20 to 3.23. Originating goods in 
consignment maintain their status provided that they do not undergo any further processing in the 
territory of a non-party other than unloading, reload ing, storing, repacking, relabeling or any other 
operation necessary to preserve them in good condition (Article 3.14).  
3.23.  Annex 2 contains the product specific rules of origin that confer originating status. The 
product specific rules applying to most industrial goods (except textiles and clothing in WT/REG340/1 
 
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 HS Chapters 50-63) provide for alternate rules, either an RVC of 40% or a change in tariff 
classification (CTC) requirement. In the case of  textiles and clothing, a CTC requirement is the 
norm. Processed agricultural products are for the mo st part subject to an RVC or CTC requirement, 
while unprocessed or wholly obtained agricultural products are subject to a CTC requirement only.  
3.5  Export duties and charges,  and quantitative restrictions 
3.24.  Except as otherwise provided for in the Agreement, the Parties may not adopt or maintain 
any prohibition or restriction or any other non-tariff measures on the export of any good of the 
other Party except in accordance with Article XI of GATT 1994 which is incorporated into the 
Agreement, mutatis mutandis  (Article 2.10). 
3.6  Regulatory provisions on trade in goods 3.6.1  Standards 
3.6.1.1  Sanitary and phytosanitary measures 
3.25.  In Chapter 5 on Sanitary and Phytosanitary (SPS) measures, the Parties re-affirm their 
existing rights and obligations under the WTO SP S Agreement and agree that Chapter 5 does not 
limit these rights and obligations (Article 5.4). 
3.26.  The Parties agree to facilitate the exchange of information on their respective SPS regimes, 
in particular by establishing a contact point for SPS measures, providing a list of its competent 
authorities and notifying any significant changes in the structure, organization and division of 
responsibility within its administration relevant to SPS measures, and providing copies of notifications made in accordance with the SPS Agreement of new or revised measures (Article 5.5). 
3.27.  The Parties agree to cooperate to enhanc e implementation of the SPS Agreement including 
through exchanging information and strengthening collaboration. Each Party agrees to give consideration to the issues of regionalization and equivalence if raised by the other Party, in 
accordance with the SPS Agreement, in order to facilitate trade between the Parties (Article 5.6). 
3.28.  The Parties agree to establish an SPS Working Group to provide a forum for consideration of 
any matter relating to the implementation of th e SPS Chapter. The SPS Working Group shall meet 
annually, or as otherwise agreed. The Parties agree to enter into urgent consultations upon 
request where trade is disrupted on SPS grounds, wi th a view to facilitating trade and minimising 
the impact of the disruption (Article 5.7). Th e SPS Working Group held its first meeting in 
Canberra in November 2013, in conjunction with the meeting of the Malaysia-Australia Agricultural 
Cooperation Working Group (MAACWG). 
3.6.1.2  Technical barriers to trade 3.29.  In Chapter 6 relating to standards, technical regulations and conformity assessment 
procedures, the Parties reaffirm their rights and obligations in accordance with the TBT Agreement 
(Article 6.4). The Parties agree to use relevant international standards, to the extent provided in Article 2.4 of the TBT Agreement as the basis for their technical regulations (Article 6.5) and to 
give positive consideration to accepting as equivalent technical regulations of the other Party, even 
if these regulations differ from their own, provided these regulations adequately fulfil the objectives of their regulations (Article 6.6). 
3.30.  The Parties agree to facilitate the accept ance of conformity assessment procedures through 
inter alia , encouraging conformity assessment bodies to enter into voluntary arrangements to 
accept the results of assessment procedures of bodi es located in the territory of the other Party, 
considering recognising accreditation of conformity  assessment bodies located in the territory of 
the other Party, and encouraging the adoption by conformity assessment bodies in their territory 
of regional and international mutual recognition agreements and arrangements (Article 6.7). WT/REG340/1 
 
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 3.31.  The Parties encourage regulatory bodies to exchange information on their experience in the 
development and application of technical regulations (Article 6.8). They agree to cooperate to 
identify, develop and promote trade facilitating initiatives regarding standards, technical regulations, and conformity assessment procedures  in areas of mutual interest. They agree to 
designate a Chapter Coordinator whose functions include monitoring the implementation of the 
TBT Chapter, exchanging information on standa rds, technical regulations, and conformity 
assessment procedures, facilitating consideration of proposals for further cooperation, facilitating 
consideration of requests for recognition of the results of conformity assessment procedures and 
facilitating cooperation. Where a matter covered under the TBT Chapter cannot be clarified or resolved through the Chapter Coordinators, the FTA Joint Commission or a subsidiary body established by it may establish an ad hoc technical working group with a view to identifying a 
solution to facilitate trade (Article 6.9). The Parties have indicated that as of March 2014 they have 
yet to commence the joint committee meeting and establish technical working groups. 
3.6.2  Safeguard mechanisms 
3.6.2.1  Global safeguards 
3.32.  The Agreement does not confer any additional rights or obligations to the Parties with 
regard to actions taken under Article XIX of GATT 1994 and the WTO Agreement on Safeguards. A 
bilateral or provisional measure may not be applied concurrently with a global safeguard measure. 
A Party considering the imposition of a global safeguard measure on an originating good of the other Party shall initiate consultations with that Party as far in advance of taking such a measure 
as practicable (Article 7.4). 
3.6.2.2  Bilateral safeguards 
3.33.  The Parties may apply bilateral safeguards during a transition period
11. In practice, given 
that Australia eliminated all tariffs on entry into force of the Agreement, such measures may only 
be taken by Malaysia. Malaysia may take a bilateral safeguard measure, if as a result of the trade 
liberalization under the Agreement, increased imports of a good, in absolute terms or relative to domestic production, cause or threaten to cause serious injury or a threat thereof to its domestic 
industry producing like or directly competitive goods (Article 7.7). The safeguard will consist of a 
suspension of further tariff reductions under the Agreement or the increase of customs duties to a 
level that will not exceed the lesser of the MFN app lied tariff in effect at the time of the action is 
taken and the MFN applied tariff in effect on the day immediately preceding the date of entry into 
force of the Agreement. A bilateral safeguard on a product can be applied for two years, 
extendable only once for one year. If the expected  duration of the measure is over one year, it 
shall be progressively liberalized at regular intervals during the period of application. Upon 
termination of the safeguard, the applied tariff w ill be no higher than the rate that would have 
been in effect if the safeguard measure had never been applied (Article 7.10). A bilateral safeguard can be applied only once on the same good. A safeguard measure shall not be applied 
to an originating good imported up to the limit of quota quantities granted under a TRQ under the 
Agreement.  
3.34.  The Parties may also apply a provisional safeguard when a delay in its application would 
cause damage difficult to repair and if a preliminary investigation shows that the increased imports 
have caused or are threatening to cause serious injury to a domestic industry (Article 8.4). A 
provisional safeguard can be applied for a maxi mum of 200 days and takes the same form as a 
definitive safeguard. If the final investigation concludes that the increased imports are not the 
cause or do not threaten to cause any serious injury to a domestic industry, the guarantees or 
funds received from the imposition of the provisional safeguard measure will be released or refunded. 
3.35.  Mutually agreed trade compensation in the fo rm of substantially equivalent concessions is to 
be provided during the period of applicatio n of the safeguard measure. If agreement on 
                                               
11 The "transitional safeguard period" for a particular good is the period from the date of the entry into 
force of the Agreement until two years after the date on which the customs duty on that good is eliminated or 
reduced to its final commitment, in accordance with th at Party's schedule of ta riff commitments in Annex 1 
(Article 7.1).  WT/REG340/1 
 
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 compensation cannot be reached, the exporting Pa rty may suspend the application of substantially 
equivalent concessions to the trade of the Party applying the safeguard measure. The right of 
suspension shall not be exercised for the first year the safeguard measure is in effect, provided that it has been applied as the result of an absolute increase in imports (Article 7.12). 
3.36.  A notification to the other Party is to be made upon initiation of an investigation, making a 
finding of serious injury, taking a decision to a pply or extend a safeguard or provisional measure 
and taking a decision to progressively liberalize an existing safeguard measure (Article 7.9).  
3.6.2.3  Balance of payments safeguards 
3.37.  In Article 18.4 there are provisions for the Parties to adopt restrictive import measures in 
the case of serious balance of payments and extern al financial difficulties or threat thereof in 
accordance with GATT 1994 and the Understanding on the Balance of Payments Provisions of 
GATT 1994 in Annex 1A of the WTO Agreement (Article 4). 
3.6.3  Anti-dumping measures 3.38.  The rights and obligations of the Parties relating to the application of anti-dumping 
m e a s u r e s  i s  g o v e r n e d  b y  A r t i c l e  V I  o f  the GATT 1994 and the Anti-Dumping Agreement 
(Article 7.2). The Parties confirm their current practice of counting toward the average all individual margins, whether positive or negative , when anti-dumping margins are established on 
the weighted-to-weighted basis or transaction-to-transaction basis, or weighted-to-transaction 
basis, and share their expectation that such practice will continue; and the Party making a decision to impose an anti-dumping duty pursuant to Ar ticle 9.1 of the Anti-Dumping Agreement, will 
normally apply the 'lesser duty' rule, by imposing a duty which is less than the dumping margin 
where such lesser duty would be adequate to remove the injury to the domestic industry. 
3.6.4  Subsidies and countervailing measures 3.39.  The rights and obligations of the Parties relating to subsidies and countervailing measures 
are governed by Article XVI of the GATT 1994 an d the Agreement on Subsidies and Countervailing 
Measures (Article 7.3). 
3.6.5  Customs-related procedures 
3.40.  Chapter 4 sets out the provisions on customs procedures and cooperation. Customs 
procedures of the Parties shall conform where possible to the respective laws, regulations and policies, to international standards and recommended practices of the World Customs Organization (Article 4.3). The Parties shall endeavor to provide each other with information to assist in the 
investigation and prevention of infringements of customs and customs-related laws and 
regulations (Article 4.4).  
3.41.   The Parties agree to administer customs procedures to facilitate the clearance of low-risk 
goods and focus on high-risk goods and to regularly review such procedures (Article 4.5).  
3.42.  The Parties shall provide for written advance rulings to be issued to importers in its 
territory, or to exporters or producers in the other Party and shall adopt or maintain procedures in 
order to issue such written advance rulings (Article 4.6).  
3.43.  The Parties shall publish on the internet and/or in print form its laws, regulations, and 
customs procedures and designate one or more enquiry points to address enquiries from interested persons on customs matters (Article 4.7). 
3.44.  The Parties shall ensure the availability of processes for administrative and judicial review of 
decisions taken by its Customs Administrations independent of the authority responsible for the decision under review (Article 4.8). Provisions on confidentiality are contained in Article 4.9. WT/REG340/1 
 
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 3.7  Sector-specific provisions on trade in goods 
3.45.  The Agreement contains no sector-specific provisions on trade in goods. 
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT 4.1  Scope and definitions 
4.1.  Article 8.1 of the Agreement defines the scope of Chapter 8 on Services. Article 8.1.4 
provides that the Chapter does not apply to (a) se rvices supplied in the exercise of governmental 
authority, (b) government procurement, (c) subsidies or grants provided by a Party or state 
enterprise thereof, (d) measures affecting traffic rights except aircraft repair and maintenance 
services, the selling and marketing of air transp ort services, and computer reservation systems. 
The Parties may apply measures to regulate the entry of natural persons of the other Party into their territory. The sole fact of requiring a visa for natural persons is not regarded as nullifying or 
impairing the benefits under Chapter 8.  
4.2.  Article 8.2 sets out the definitions used in the Chapter. Trade in services is defined in 
paragraph 8.2(o) and mirrors the definitions set out in Article I.2 (a)-(d) of the GATS.  
4.3.  Article 8.16 provides for the Parties to review commitments on trade in services with the first 
review within three years from the date of entry into force of the Agreement and at least every five years subsequently, with the aim of improving the overall commitments (Article 8.16). 
4.4.  Chapter 12 concerns investment. Article 12.1 provides that the Chapter applies to measures 
adopted or maintained by a Party relating to investors of the other Party and covered investments. It does not apply to (a) subsidies or grants provided by a Party, (b) taxation (subject to Article 18.3), and (c) services supplied in the exer cise of governmental authority by the relevant 
body or authority of a Party.
12  
4.5.  Article 12.2 provides definitions used in Chapter 12 on investment. Article 12.3 describes the 
relationship of Chapter 12 on investment to other Chapters of the Agreement.  
4.6.  Article 12.3.1 excludes services and the movement of natural persons from coverage of 
Chapter 12 to the extent that they are covered by Chapter 8 (Trade in Services) and Chapter 10 
(Movement of Natural Persons). Article 12.3.2 no tes that Article 12.7 (Minimum standard of 
treatment), 12.8 (Expropriation and compensation) 12.9 (Transfers), 12.10 (Treatment in the case 
of strife) and 12.11 (Subrogation), shall apply mutatis mutandis  to any measure affecting the 
supply of a service by a service supplier of a Part y through commercial presence in the territory of 
the other Party (pursuant to Chapter 8), but only to the extent that they relate to an investment 
and an obligation under Chapter 12, regardless of whether such a service sector is scheduled in a 
Party's Schedule of Specific Commitments in Annex 3.  
4.7.  The FTA Joint Commission or a subsidiary body established by it may consider any matters 
relating to the implementation of the Chapter on Trade in Services, the Annex on Financial 
Services, the Chapter on Telecommunications Serv ices, the Chapter on the Movement of Natural 
Persons, and the Chapter on the Framework on  Mutual Recognition Arrangements, including 
reviewing and monitoring implementation, identifying areas to be improved for facilitating trade 
between the Parties, implementing emergency safe guard measures, considering the application of 
MFN treatment, facilitating cooperation between the Parties and discussing any other issues related to these chapters or annex (Article 8.4). 
4.8.  The FTA Joint Commission or a subsidiary body established by it may exchange information 
or discuss issues related to the Chapter on Investment, including reviewing and monitoring the implementation of the Chapter on Investment an d overseeing the work program established in 
Article 12.16 (Article 12.17). 
                                               
12 Article 12.1.2(c) provides that "… a service supplie d in the exercise of governmental authority means 
any service, which is supplied neither on a commercial basis nor in competition with one or more service suppliers." WT/REG340/1 
 
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 4.2  Denial of benefits 
4.9.  Article 8.15 concerns denial of benefits and mirrors Article XXVII of the GATS. Article 8.15 
permits a Party to deny benefits under the Chapter (a) to the supply of a service, if that Party determines that the service is supplied from or in the territory of a non-Party, (b) in the case of a 
maritime transport service, if it establishes that the service is supplied (i) by a vessel registered 
under the laws of a non-Party, and (ii) is oper ated by a person of a non-Party which operates 
and/or uses the vessel in whole or in part, and (c) to a service supplier that is a juridical person, if 
it establishes that it is not a service supplier of the other Party.  
4.10.  On investment, Article 12.12 permits a Party, subject to prior notification or consultation, to 
deny the benefits of the Chapter to an investor of the other Party that is a juridical person of such 
other Party and to investments of that investor if the juridical person has no substantive business 
activities in the territory of the other Party and persons of a non-Party, or of the denying Party, 
own or control the juridical person.  
4.3  General provisions on trade in services 
4.3.1  Market access 
4.11.  Article 8.5 concerns market access. It mirrors Article XVI.1 and 2 of the GATS and its 
footnotes. Article 8.5.1 provides that in resp ect of market access through the modes of supply 
defined in paragraph (o) of Article 8.2, each Party shall accord services and service suppliers of the 
other Party treatment no less favourable than that provided for in the Schedule of Specific Commitments (Annex 3 of the Agreement) or th e Schedule of Movement of Natural Persons 
Commitments (Annex 4 of the Agreement). Article 8.7 provides that the Parties may negotiate 
additional commitments with respect to measures affecting trade in services not subject to 
scheduling under Articles 8.3 (National Treatment) or 8.5 (Market Access), including those regarding qualifications, standards or licensing. Any such commitments shall be inscribed in a 
Party's relevant Schedule of Specific Commitments.  
4.3.2  National treatment and MFN 4.12.  Article 8.3 concerns national treatment. Article 8.3.1 mirrors Article XVII of the GATS, and 
provides that a Party shall accord to services an d service suppliers of the other Party treatment no 
less favourable than that it accords to its own like services and suppliers. Article 8.3.2 provides that a Party may meet the requirement of para graph 1 by according to services or service 
suppliers of the other Party either formally identical treatment or formally different treatment to 
that it accords its own like services and service suppliers. Article 8.3.3 provides that formally 
identical or different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of a Party compared to like 
services of the other Party.  
4.13.  Article 12.4 concerns national treatment on investment. Article 12.4 requires that each 
Party accord to investors of the other Party and to their investments treatment no less favourable 
than that it accords in like circumstances to its own investors and their investments in relation to 
establishment, acquisition, expansion, manage ment, conduct, operation, and sale or other 
disposition of their investments. The application of this Article is conditioned upon the completion of a work programme (described below).  
4.14.  Article 12.15 provides that nothing in Article 12.4 (national treatment) shall be construed to 
prevent a Party from adopting or maintaining a measure that requires special formalities in connection with investments, such as a requirement that investments be legally constituted under 
the laws and regulations of the Party (provided that such requirements do not materially impair 
the protections afforded by a Party to investors of the other Party and investments). Article 12.15.2 provides that notwithstanding Arti cles 12.4 and 12.5 (MFN treatment), a Party may 
require an investor of the other Party or its investment, to provide information concerning that 
investment for informational or statistical purposes. WT/REG340/1 
 
- 22 - 
 
 4.15.  Article 12.5 provides that each Party shall accord to investors of the other Party and covered 
investments, in relation to the establishment,  acquisition, expansion, management, conduct, 
operation and sale or other disposition of investment in its territory, treatment no less favourable than that it accords, in like circumstances, to in vestors and investments in its territory of investors 
of any non-Party. As for national treatment, the application of this Article is conditioned upon the 
completion of a work programme. 
4.16.  Articles 12.4 (National Treatment) and 12.5 (MFN Treatment) do not apply to government 
procurement (Article 12.14.4). 
4.3.3  Commercial presence 4.17.  Chapter 8 of the Agreement contains no specific provisions on commercial presence, apart 
from the definition of commercial presence in Ar ticle 8.2(b). Commitments in relation to the right 
to establish a commercial presence are set out in the Parties' schedules of commitments on 
Services (Annex 3). 
4.18.  Article 12.3 of Chapter 12 (Investment) pr ovides that Article 12.7 (Minimum Standard of 
Treatment) Article 12.8 (Expropriation and Compen sation), Article 12.9 (Transfers), Article 12.10 
(Treatment in the Case of Strife), Article 12.11 (Subrogation) shall apply, mutatis mutandis , to 
any measure affecting the supply of a service by a service supplier of a Party through commercial 
presence in the territory of any one of the other Party pursuant to Chapter 8 (Trade in Services), 
but only to the extent that such measures relate to a covered investment and an obligation under the Chapter, regardless of whether the Party ha s scheduled such a services commitment in its 
Schedule.  
4.3.4  Movement of natural persons 
4.19.  Chapter 10 of the Agreement concerns the movement of natural persons. Article 10.1 
provides that the objectives of the Chapter are (a ) to provide for rights and obligations additional 
to those set out in Chapter 8 (Services) and 12 (Investment) in relation to the movement of 
natural persons between the Parties, (b) to facilitate the movement of natural persons engaged in the conduct of trade and investment between the Parties, and (c) to establish streamlined and 
transparent procedures for applications for immigration formalities for the temporary entry of 
natural persons.  
4.20.  Article 10.2 concerns the scope of the Chapter which applies to measures affecting the 
movement of natural persons from one Party to another which may include: (a) business visitors, 
(b) contractual service suppliers, (c) executives of a business headquartered in a Party 
establishing a branch or subsidiary or other commercial presence of that business in the other Party, (d) intra-corporate transferees and (e) inst allers and servicers. The Chapter does not apply 
to measures affecting natural persons seeking access to the employment market of a Party, nor to 
measures regarding citizenship, residence or employment on a permanent basis. Article 10.4 provides that nothing in the Chapter shall prevent the Parties from applying measures to regulate 
the entry of natural persons of the other Party, including measures necessary to protect the 
integrity of its territory, provided such measures are not applied in a manner that nullifies or impairs the benefits accruing under the Agreement. The need to meet eligibility requirements prior 
to entry to a Party is not to be regarded as impairing benefits under the Agreement.  
4.21.  Article 10.5 concerns the grant of temporar y entry and provides that each Party shall grant 
temporary entry or extension of temporary stay to  natural persons of the other Party covered by 
the scope of the Chapter (Article 10.2), provided that such persons follow prescribed application 
procedures and meet all relevant eligibility re quirements. Spouses and dependents of a natural 
persons granted temporary entry for at least 12 months shall upon application be granted temporary stay for an equal period to that of  the natural person. Spouses and dependants who 
have been granted temporary entry shall also, upon application, be allowed to work subject to the 
Party's laws and regulations, relevant licensing, administrative and registration requirements. (Article 10.7). The Parties agree on a number of tr ansparency measures relating to the publication 
of information concerning immigration formalities relevant to the chapter and the maintenance of 
appropriate mechanisms to respond to inquiries from the other Party as set out in Article 10.9. The 
Parties do not have recourse to the dispute settlement mechanism under the Agreement regarding WT/REG340/1 
 
- 23 - 
 
 a refusal to grant temporary entry unless the matter involves a pattern of practice and the natural 
persons affected have exhausted all available domestic remedies. 
4.22.  Australia's horizontal commitments under the GATS refer to executives and senior managers 
as intra-corporate transferees, independent execut ives, service sellers, and specialists. Under the 
Agreement, additional categories of business visitors (including service sellers, investors and 
goods sellers) and contractual service suppliers have been added. For some categories of natural persons, the period of stay has been extend ed under the Agreement compared to the GATS. 
Spouses of intra-corporate transferees, independen t executives, and contractual service suppliers 
are accorded full working rights where the stay of temporary entrants is a least 12 months. 
4.23.  Malaysia's horizontal commitments under the GATS include definitions of categories of 
natural persons (intra-corporate transferees and others) covered by its commitments. Those 
horizontal provisions also set limits for entry and stay of five years for all except business visitors 
not based in Malaysia (90 days). Under the Agreement, Malaysia has identified four categories of natural persons (intra-corporate transferees, others, business visitors and installer and servicers) 
in the commitments made in its Schedule of movement of natural persons and has lengthened the 
period of stay compared to the GATS. Specific commitments on a sector and subsector basis laid 
out in detail in the Schedule for Malaysia.  
4.24.  Annex 4 to the Agreement sets out the periods under which a natural person may remain in 
the territory of a Party (see Tables 4.1 and 4.2 be low) and contains the schedules of commitments 
for the movement of natural persons.  
Table 4.1 Australia 
Category Migratory Condition Length of Stay 
Intra Corporate Transferee (i) Executives, senior managers,  
 Subject to employer sponsorship, initial 
stay of up to four years, with extension to maximum of 14 years 
 (ii) Specialists Subject to employer sponsorship, up to two 
years, with provision for an extension 
Independent Executives Independent Executives  Maximum of 2 years 
Business Visitor (i) service sellers Initial stay of 6 months, maximum of 12 
months 
 (ii) business visitors (negotiations or 
meetings) Maximum 3 month stay 
 (iii) business visitors (investors) Maximum 3 month stay 
 (iv) business visitors (sale of goods - 
non retail) Maximum 3 month stay 
Contractual Service 
Suppliers (i) Contractual Service suppliers 
(independent professionals) Subject to employer sponsorship in a 
gazetted occupation, up to 12 months with 
provision for an extension 
 (ii) Contractual Service suppliers trade 
technical professional skills Subject to employer sponsorship in a 
gazetted occupation, up to 12 months with provision for an extension 
Spouses Spouses of temporary entrants under 
the Intra Corporate Transferee, 
Independent Executive and Contractual 
Service Supplier categories Entry and stay, including full working rights, 
for the same period as for the temporary 
entrant 
 
Source:  Australia's Annex 4 Schedule of Mo vement of natural pe rsons commitments.  
Table 4.2 Malaysia 
Category Migratory Condition Length of Stay 
Intra-Corporate Transferee (a) Senior Managers,  
(b) Specialists or experts (three per organization) Maximum 10 years 
Others (a) Specialists or experts,  
(b) Professionals  Maximum 10 years 
 
Business Visitors (a) Service selle rs or representatives, (b) goods 
seller (c) investors Maximum 90 days 
Installer and servicer  Maximum six months 
 
Source: Malaysia's Annex 4 Schedule of Movement of natural persons commitments. WT/REG340/1 
 
- 24 - 
 
 4.4  Other measures on investment 
4.25.  Article 12.7 concerns minimum standard of treatment for investments. Article 12.7.1 
requires each Party to accord to covered investments treatment in accordance with customary international law, including fair and equitable treatment and full protection and security. Article 
12.8 concerns expropriation and compensation. An Annex on expropriation appended to the 
Chapter elaborates on what constitutes an expropriation and describes circumstances in which indirect expropriation takes place. Article 12.8 provides that a Party shall not expropriate or 
nationalise a covered investment either directly or indirectly except (a) for a public purpose, (b) in 
a non-discriminatory manner, (c) on payment of prompt, adequate and effective compensation, and (d) in accordance with due process of law. Pursuant to Article 12.8.2, compensation shall 
(a) be paid without delay, (b) be equivalent to the fair market value of the expropriated 
investment (c) not reflect any change in value because the intended expropriation had become 
known earlier, and (d) be fully realisable and freely transferable in freely usable currency. Article 10.8.5 notes that Article 12.8 does not apply to the issuance of compulsory licences in 
relation to intellectual property rights in accordance with the TRIPS Agreement.  
4.26.  Article 12.9, on transfers, provides in Article 12.9.1 that each Party shall allow all transfers 
relating to a covered investment to be made freely and without delay. Article 12.9.2 requires that 
each Party shall allow such transfers to be made in a freely usable currency at the market rate of 
exchange prevailing at the time of transfer. Ar ticle 12.9.3 provides that a Party may prevent or 
delay a transfer through the equitable, non-discriminatory and good faith application of its laws and regulations relating to (a) bankruptcy, insolven cy or the protection of creditors, (b) issuing, 
trading or dealing in securities, futures, options or derivatives, (c) criminal or penal offences and 
the recovery of proceeds of crime, (d) financia l reporting or record keeping to assist law 
enforcement or financial regulatory authorities, (e ) ensuring compliance with orders or judgements 
in judicial or administrative proceedings or ru lings, (f) taxation, (g) social security, public 
retirement or statutory savings schemes, and (h) severance entitlements of employees. Article 12.9.4 provides that nothing in the Chapte r shall affect the rights and obligations of the 
Parties as party to the Articles of Agreement of the International Monetary Fund, provided that a 
Party shall not impose restrictions on any capital transactions that are inconsistent with Chapter 12, except under Article 18.4 (Measures to  Safeguard the Balance of Payments) or at the 
request of the IMF.  
4.27.  Articles 12.10 and 12.11 deal respectively with  treatment in case of strife and subrogation. 
4.28.  Article 12.14 (Non-conforming Measures) provides that the Parties' obligations on national 
treatment and MFN treatment on investment in Chapter 12 do not apply to (a) any existing 
non-conforming measure maintained by a Party at the central or regional level of government as 
set out by the Party in its schedule of non-conforming measures, or at the local level of government, (b) the continuation or prompt renewal of any such non-conforming measure, or (c) 
an amendment to any such non-conforming measure, provided that the amendment does not 
decrease the level of conformity of the measure as it existed at the date of entry into force of the Party's Schedules of Non-Conforming Measures. Article 12.14.3 provides that neither Party may require an investor of the other Party, by reason of its nationality, to sell or otherwise dispose of 
an investment existing at the time the measure becomes effective. Footnote 25 to Article 12.14 
makes the application of Article 12.14 subject to a work program in Article 12.16. According to the 
work programme in Article 12.16, the Parties shall enter into discussions on Schedules of 
non-conforming measures within three years from the date of entry into force of the Agreement 
with the aim of concluding negotiations no later than five years, unless they otherwise agree. The Parties' application of national treatment and MFN treatment with regard to investment shall not 
apply until the Parties' schedules of non-conforming measures have entered into force. According 
to the Parties, as of March 2014, they have yet to enter into discussions on schedules of 
non-conforming measures. 
4.29.  The Parties assign the functions of in formation exchange, review and monitoring, and 
oversight of negotiations on the work programme, among others, to the FTA Joint Commission or 
subsidiary bodies established by it (Article 12.17). WT/REG340/1 
 
- 25 - 
 
 4.5  Liberalization commitments 
4.30.  Article 8.6 provides that each Party shall set out in a Schedule the specific commitments it 
undertakes under Articles 8.3 (national treatment), 8.5 (market access) and 8.7 (additional commitments). It requires that the Schedules shall specify (a) terms, limitations and conditions on 
market access, (b) conditions and qualifications on national treatment, (c) undertakings relating to 
additional commitments and where appropriate, (d ) the time-frame for implementation of such 
commitments. The Schedules of Specific Commitments on Services of the Parties are found in 
Annexes 3 and 4.  
4.31.  Article 8.8 permits the Parties to modify or withdraw any commitment in its Schedule of 
Specific Commitments under Annex 3 or 4, at any time after three years have elapsed from the Agreement's entry into force in accordance with the procedures of the GATS.  
4.5.1  Australia 
4.32.  In its services commitments under the Agreement, Australia has bound a number of 
improvements in comparison to its commitments under the GATS (see Table 4.3 below). At a 
horizontal level, Australia's descriptions of the requirement to submit investments to examination 
under the Foreign Acquisitions and Takeovers Act 1975 now includes specific threshold amounts.
13 
Under legal services, a broader range of services  are now the subject of commitments under the 
Agreement in comparison to the GATS. Full access is now granted to the domestic law (host-
country law) sub-sector of Australia's legal services market. Australia has also included legal arbitration and conciliation/mediation services in relation to foreign and investment law to its covered subsectors. It has removed mode 3 market access limitations for accounting, auditing and 
book-keeping services and removed a residency requirement for accounting and book-keeping 
services (but has retained it for auditors and liquidators). Under computer and related services Australia has opened the entire subsector except for measures affecting services in other sectors 
covered by CPC 844 and 849, an improvement compared to its GATS Schedule. In research and 
development, Australia has added R&D services  on natural sciences and engineering, and 
interdisciplinary R&D services on natural sciences and engineering. It has added the subsector of 
technical testing and analysis services. Under services incidental to mining, Australia's 
commitments under the Agreement contain a broader definition of the subsector vis-a-vis  its GATS 
commitments. Under related scientific and technical consulting services, Australia's commitments under the Agreement define this subsector by reference to CPC 8675, compared to the GATS, 
resulting in a broader commitment.  
4.33.  Under telecommunications Australia has broadened the type of entities holding a new carrier 
licence to include partnerships where each partner is a constitutional corporation under Australian 
law. Under construction and related engineering services, Australia has undertaken new 
commitments for pre-erection work at constructions sites, special trade construction work and renting services related to equipment for construction or demolition of buildings or civil 
engineering works, with operator, compared to the GATS. Under retailing services, it has added 
inventory management of goods, assembling, sorting and grading of goods, breaking bulk, redistribution and delivery services. 
4.34.  Under education services (other education services), Australia has expanded the illustrative 
list of services described in the definition of the subsector. For environmental services it has 
replaced "unbound" under mode 1 market access with "none" and has a different definition of the committed subsector, as well as new subsectors (protection of ambient air and climate 
(CPC 9404), remediation and cleanup of soil and water (CPC 9406), noise and vibration abatement 
(CPC 9405), protection of biodiv ersity and landscape (CPC 9406)
14 and other environmental and 
ancillary services (CPC 9409)).  
4.35.  Under financial services, Australia has removed a residence requirement on mode 3 for 
insurance and insurance-related services. For banking, several market access and national 
                                               
13 Investments under the threshold amount are not subject to review by the Foreign Investment Review 
Board. 
14 Per footnote 11 to Australia's Services Schedule under the Agreement, "Australia's commitments 
under items 9406** combine to cover the entirety of CPC 9406 services." WT/REG340/1 
 
- 26 - 
 
 treatment restrictions have been removed in comparison to its GATS schedule. For health-related 
and social services, Australia has added the subsector of private hospital services (subject to 
economic needs tests, limitations on the number of services operations and types of legal entity). 
For transport, Australia has undertaken new commitments on port services in respect of maritime 
transport services. Maritime cargo handling, customs clearance and maritime agency services are 
new subsectors compared to Australia's GATS commitments. Australia has also made new commitments in rail transport services and taken new sub sectoral commitments under road 
services and services auxiliary to all modes of transport.  
Table 4.3 Australia: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4) 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as indicated 
in the GATS 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in 
the FTA horizontal 
reservations) in the 
FTA are: 
1. BUSINESS SERVICES partial improved 
A. Professional services partial improved 
B. Computer and related se rvices  partial improved 
C. Research and development partial improved 
D. Real estate partial same 
E. Rental/Leasing serv ices without operators partial same 
F. Other partial improved 
2. COMMUNICATION SERVICES partial improved 
A. Postal no commitments no commitments 
B. Courier no commitments no commitments 
C. Telecommunication  partial improved 
D. Audiovisual no commitments no commitments 
E. Other no commitments no commitments 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES partial improved 
A. General construction work  for buildings partial same 
B. General construction wo rk for civil engineering partial same 
C. Installation and assembly work partial same 
D. Building completion and finishing work partial same 
E. Other no commitments new 
4. DISTRIBUTION SERVICES partial improved 
A. Commission agents' services partial same 
B. Wholesale trade services partial same 
C. Retailing services partial improved 
D. Franchising full same 
E. Other no commitments no commitments 
5. EDUCATION SERVICES partial improved 
A. Primary education services no commitments no commitments 
B. Secondary education services  partial same 
C. Higher education services  partial same 
D. Adult education no commitments no commitments 
E. Other education services  partial improved 
6. ENVIRONMENTAL SERVICES partial improved 
A. Sewage services partial improved 
B. Refuse disposal services partial improved 
C. Sanitation and similar services  partial improved 
D. Other no commitments new 
7. FINANCIAL SERVICES partial improved 
A. All insurance and insu rance-related services partial improved 
B. Banking and other financia l services partial improved 
8. HEALTH RELATED AND SOCIAL SERVICES partial improved 
A. Hospital services no commitments new 
B. Other Human Health Services partial same 
C. Social Services no commitments no commitments 
D. Other no commitments no commitments 
9. TOURISM AND TRAVEL RELA TED SERVICES partial same 
A. Hotels an d restaurants partial same 
B. Travel agencies and to ur operators partial same 
C. Tourist guides full same WT/REG340/1 
 
- 27 - 
 
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as indicated 
in the GATS 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in 
the FTA horizontal 
reservations) in the 
FTA are: 
D. Other no commitments no commitments 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES partial same 
A. Entertainment services no commitments no commitments 
B. News agency services full same 
C. Libraries, archives, mu seums and other cultural 
services no commitments no commitments 
D. Sporting and other recreational services  partial same 
11. TRANSPORT SERVICES partial improved 
A. Maritime partial improved 
B. Internal waterways no commitments no commitments 
C. Air  partial same 
D. Space no commitments no commitments 
E. Rail  no commitments new 
F. Road partial improved 
G. Pipeline full same 
H. Services auxiliary to all mode s of transport partial improved 
I. Other no commitments no commitments 
12. OTHER SERVICES NOT INCLUDED ELSE WHERE no commitment s no commitments 
 
Source: Australia's Schedule of Specific Commitments under the GATS (S/DCS/W/AUS) and Annex under the 
Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4. 
 
4.5.2  Malaysia 
4.36.  Table 4.4 below sets out the services commitments of Malaysia under the Agreement in 
comparison to its commitments under the GATS. In its horizontal commitments under the 
Agreement Malaysia has increased the threshold for approval of acquisitions, mergers and takeovers from RM 5 million under the GATS to RM  10 million. In respect of accounting, auditing 
and bookkeeping services, it has removed a mode 3 partnership and foreign investment ceiling 
and an authentication requirement for auditing se rvices for modes 1 and 2. For taxation services 
Malaysia has improved the mode 3 market access aggregate foreign investment limit from 30% in the GATS to 51%. Malaysia had added a commitment for multidisciplinary services (architecture, 
engineering and quantity surveyin g) subject to a maximum foreign equity limit of 30% for joint 
ventures and a prohibition on foreign directors. Malaysia has added new commitments on urban planning, landscaping services and veterinary se rvices compared to the GATS. Under computer 
services, it has improved upon its GATS commitments by removing mode 3 joint venture 
requirements and foreign equity limits in most subsectors compared to its GATS Schedule. It has added the subsectors of data processing services  (CPC 843), maintenance and repair services of 
computers (CPC 845), other computer services (CPC 849), and data preparation services 
(CPC 84910). For research and development servic es, it has increased the foreign shareholding 
limit from 30% in its GATS Schedule to 51% and added a number of new R&D subsectors to its Schedule. For rental-leasing services without operators, it has removed an agency requirement for 
ships excluding cabotage and offshore trades compared to its GATS schedule. Under other 
business services, Malaysia has raised the shareholder limit in a number of subsectors from 30% in its GATS Schedule to at least 51% and has scheduled a number of new subsectors including 
services incidental to mining and related scientific and technical consulting services.  
4.37.  For telecommunications, based on domestic regulations Malaysia has reclassified its 
communications service sector on the basis of provision of network facility services, provision of network service, and provision of application service.
15 For network facility services and provision 
of network services, Malaysia has increased the foreign shareholding to 70% compared to 30% in 
its GATS schedule. Malaysia has granted full access for provision of application services. On audiovisual services, for motion picture, video ta pe and audio recording distribution services, the 
number of market access limitations has been redu ced but the subsector of broadcasting services 
                                               
15 Definitions of services are provided in Malaysia 's Schedule of Specific  Commitments, page 29. WT/REG340/1 
 
- 28 - 
 
 in which it has GATS commitments has been removed. In construction services Malaysia has 
increased the maximum foreign equity limit to 49% from 30% and has added a number of 
construction activities that may be carried out on a project-by-project basis by foreign construction companies that are not locally incorporated. Malaysia has committed a number of subsectors of 
educational services and environmental services (not committed in its GATS schedule), subject to 
a joint venture requirement and foreign equity limit.  
4.38.  In financial services, Malaysia has added commitments for investment banks subject to an 
aggregate foreign shareholding not exceeding 70%. With regard to the acceptance of deposits in 
the banking sector, it has reduced the market a ccess limitations in the GATS and under national 
treatment it has removed the maximum foreign shar eholding limit of 30% for branching (this limit 
has also been removed in respect of lending). For advisory, intermediation and other auxiliary 
financial services, Malaysia has relaxed the establishment criteria for entry as a non-bank. For 
health services, it has increased the permitted foreign shareholding in a joint venture for private hospital services from 30% to 49%. In tourism and travel related services, foreign equity limits in 
hotel and restaurant services, and travel agencies and tour operators services have been increased 
to 49% and 70%, respectively, from 30% under Malaysia's GATS commitments. In recreational, cultural and sporting services, Malaysia permit s theme parks (CPC 96194), which in the GATS may 
be supplied only by a natural person, to be provided through joint venture with aggregate foreign 
shareholding not exceeding 70%. Under transport se rvices, in international maritime transport, 
Malaysia has removed the exclusion on government cargo and raised the foreign equity ceiling from 30% to 51%. For maritime agency services, Malaysia has removed joint venture 
requirements and foreign equity limitations for marketing and sales of maritime transport and 
vessel salvage and refloating services except on inland waters. 
Table 4.4 Malaysia: comparison between the GATS and the Agreement specific 
commitments in trade in services (excluding mode 4)
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as indicated 
in the GATS 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in 
the FTA horizontal 
reservations) in the FTA 
are: 
1. BUSINESS SERVICES partial improved 
A. Professional services partial improved 
B. Computer and related se rvices  partial improved 
C. Research and development partial improved 
D. Real estate no commitments no commitments 
E. Rental/Leasing serv ices without operators partial improved 
F. Other partial improved 
2. COMMUNICATION SERVICES partial improved 
A. Postal no commitments no commitments 
B. Courier no commitments no commitments 
C. Telecommunication  partial improved  
D. Audiovisual partial improved 
E. Other no commitments no commitments 
3. CONSTRUCTION AND RELATED ENGINEERING 
SERVICES partial improved 
 A. General construction work for buildings partial improved  
 B. General construction work for civil engineering partial improved  
 C. Installation and assembly work partial improved  
 D. Building completion and finishing work partial improved  
 E. Other partial improved  
4. DISTRIBUTION SERVICES no commitments no commitments 
5. EDUCATION SERVICES No commitments new 
A. Primary education services no commitments new 
B. Secondary education services  no commitments new 
C. Higher education services  No commitments new 
D. Adult education no commitments no commitments 
E. Other education services  no commitments new 
6. ENVIRONMENTAL SERVIC ES no commitments new 
A. Sewage services no commitments new 
B. Refuse disposal services no commitments no commitments WT/REG340/1 
 
- 29 - 
 
 
Sectors (CPC Classification) GATS FTA 
Sectoral 
Commitments 
(except as indicated 
in the GATS 
horizontal 
commitments) Compared to the GATS, 
sectoral commitments 
(except as indicated in 
the FTA horizontal 
reservations) in the FTA 
are: 
C. Sanitation and similar services  no commitments no commitments 
D. Other no commitments new 
7. FINANCIAL SERVICES partial improved 
A. All insurance and insurance-re lated services partial improved 
B. Banking and other financial services partial improved  
8. HEALTH RELATED AND SOCIAL SERVICES partial improved  
A. Hospital services partial improved 
B. Other Human Health Services no commitments no commitments 
C. Social Services no commitments no commitments 
D. Other no commitments no commitments 
9.TOURISM AND TRAVEL RELATED SERVICES partial improved  
A. Hotels and restaura nts partial improved  
B. Travel agencies and tour operators partial improved  
C. Tourist guides no commitments no commitments 
D. Other no commitments no commitments 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES partial improved 
A. Entertainment services partial improved 
B. News agency services no  commitments no commitments 
C. Libraries, archives, mu seums and other cultural 
services no commitments no commitments 
D. Sporting and other recreational services  partial same 
11. TRANSPORT SERVICES partial improved  
A. Maritime partial improved 
B. Internal waterways no commitments no commitments 
C. Air  no commitments no commitments 
D. Space no commitments no commitments 
E. Rail  no commitments no commitments 
F. Road no commitments no commitments 
G. Pipeline no commitments no commitments 
H. Services auxiliary to all modes of transport no commitments no commitments 
I. Other no commitments no commitments 
12. OTHER SERVICES NOT INCLUDED 
ELSEWHERE partial same 
 
Source:  Malaysia's Schedule of Specific Commitmen ts under the GATS (S/DCS/W/MYS) and Annex under the 
Agreement. The comparison only concerns market access and national treatment for modes 1-3, and not mode 4.  
4.6  Regulatory provisions  
4.6.1  Domestic regulation 4.39.  Article 8.9 concerns domestic regulation, and mirrors Article VI of the GATS. Article 8.9.1 
provides that in sectors where commitments have been undertaken, each Party shall ensure that 
all measures of general application affecting trade in services are administered in a reasonable, objective and impartial manner. Article 8.9.2 provides  that with a view to ensuring that domestic 
regulation, including measures relating to qualification requirements, do not constitute 
unnecessary barriers to trade in services, the Parties shall jointly review the results of negotiations on such measures conducted under Article VI.4 of the GATS, with a view to incorporating the 
results into the Chapter. The remainder of Articl e 8.9.2 duplicates subparagraphs (a)-(c) of Article 
VI.4 of the GATS. Article 8.9.4 provides that acco unt shall be taken of international standards of 
relevant international organisations applied by a Party when determining whether that Party is in conformity with its obligations under 8.9.3(a). 
4.40.  Article 8.9.3 provides that pending the incorporation of any disciplines pursuant to 
Article 8.9.2, for sectors in respect of which a Party has undertaken specific commitments, a Party shall not apply licensing and qualification requirements and technical standards in a manner that 
nullifies or impairs such specific commitments in a manner inconsistent with WT/REG340/1 
 
- 30 - 
 
 sub-paragraphs (a)-(b). Those sub-paragraphs, toge ther with Article 8.9.4 duplicate the language 
of Article VI.5(a)-(b) of the GATS.  
4.41.  Article 8.9.5 expands upon Article VI.3 of  the GATS, by requiring the Party receiving an 
incomplete application to identify the additional information required to process the application and 
provide a timeframe for the applicant to remedy any such deficiencies in the application; and 
requires the Party terminating or denying an application to inform the applicant in writing, to the maximum extent possible and without delay, of the reasons for such action and provide the 
possibility for the applicant to resubmit a new a pplication. Article 8.9.6 requires the Parties to 
provide adequate procedures to verify the competen ce of professionals of the other Party. Subject 
to its laws and regulations, a Party shall permit service suppliers of the other Party to use the business names under which they ordinarily trade in the territory of the other Party and otherwise 
ensure that the use of business names is not unduly restricted. 
4.6.2  Recognition 4.42.  Article 8.10 of the Agreement concerns recognition. Article 8.10.1 closely follows 
Article VII.1 of the GATS and provides that for the purposes of fulfilling its standards for the 
authorization, licensing or certification of services suppliers, each Party may recognize the education, experience, licences or certifications granted in the other Party. Such recognition may 
be achieved through harmonization or otherwis e, and may be based upon an agreement or 
accorded unilaterally. Article 8.10.3 duplicates Arti cle VII.2 of the GATS and provides that where a 
Party recognizes unilaterally or by agreement pursuant to Article 8.10.1, the Party which is party to such an agreement shall afford the other Party adequate opportunity to negotiate its accession 
to the agreement or to negotiate a comparable agreement or arrangement with it. If recognition is 
accorded autonomously it shall afford adequate opportunity to the other Party to demonstrate that the education, experience, licences or certifications should also be recognized.  
4.43.  Article 8.10.4 mirrors the language of GATS Article VII.3 such that a Party should not accord 
recognition in a manner which could constitute a means of discrimination between countries in the application of its standards or criteria for the authorization, licensing or certification of service 
suppliers or a disguised restriction on trade in services.  
4.44.  Chapter 11 of the Agreement provides a Framework on Mutual Recognition Arrangements 
through which the Parties encourage the development of mutual recognition arrangements among competent bodies on professional services, by fa cilitating discussion and exchange of information 
between these bodies.
16  
4.6.3  Subsidies 4.45.  The Agreement contains no provisions on subsidies relating to services or investment. 
4.6.4  Safeguards 
4.46.  Article 8.13 concerns emergency safeguard measures in services. The Parties agree to 
initiate discussions within one year from the Agreement's entry into force to develop mutually 
acceptable guidelines and procedures for the application of emergency safeguard measures within 
five years of the entry into force of the Agreement.
17 Notwithstanding this, if a Party considers it 
has suffered a substantial adverse impact caused by a specific commitment in Annex 3 or 4 and a Party provides from more favourable treatment under the Agreement than the Party is obliged to 
provide to services and service suppliers of th e other Party under GATS or the Australia-New 
Zealand FTA at the time the Agreement entered into force, the affected Party may request consultations which are to be responded to by the other Party in good faith with a view to reaching 
a mutually acceptable solution within a reasonable time.  
                                               
16 According to the Parties, a meeting between representatives of the Australian Institute of Public 
Accountants (IPA) and the Malaysian Institute of Accoun tants (MIA) accounting representative bodies was held 
on 25 November 2013 to discuss possible collaboration to wards a bilateral MRA in the profession as envisaged 
by the MRA Chapter. 
17 According to the Parties, as of March 2014 they  have yet to engage discussions on emergency 
safeguards measur es in services. WT/REG340/1 
 
- 31 - 
 
 4.47.  Article 18.4(b) provides for the Parties to adopt or maintain restrictions on trade in services, 
including on payments or transfers, in case of serious balance of payments and external financial 
difficulties. Likewise, Article 18.4(c) provides for such measures in the case of covered investments. Restrictions so adopted or maintained  shall be consistent with the IMF Articles of 
Agreement; avoid unnecessary damage to the commercial, economic and financial interests of the 
other Party; not exceed those necessary to deal with the circumstances so described; be temporary and; be applied on a non-discriminatory basis. 
4.48.  With respect to trade in services and investment, the Parties recognize that particular 
pressures on the balance of payments of a Part y in the process of economic development or 
economic transition may necessitate the use of restrictions to ensure, inter alia , the maintenance 
of a level of financial reserves adequate for the implementation of its programme of economic 
development or economic transition and that in determining the incidence of such restrictions, a 
Party may give priority to economic sectors which are more essential to its economic or development programmes. However, such restrictions shall not be adopted or maintained for the 
purpose of protecting a particular sector. 
4.7  Sector specific provisions on trade in services 4.7.1   Financial Services 
4.49.  Chapter 8 includes an Annex on Financial Services composed of 10 Articles. The Annex 
closely follows the GATS Annex on Financial Services . In addition, the Annex includes definitions of 
self-regulatory organizations (Article 2(f)), recognition of Shariah-compliant financial services (Article 3), new financial services (Article 4), measures for prudential and regulatory supervision 
(Article 5), recognition of prudential measures (Article 6), financial services exceptions (Article 7), 
regulatory transparency (Article 8), payment and clearing systems (Article 9), and dispute settlement (Article 10).  
4.50.  Article 4 provides that the Parties agree to permit the supply of new financial services but 
may determine the institutional and juridical form through which the new financial service may be supplied and may require authorization for the supply of the service. Where authorization is 
required, a decision shall be made within a reasonable time, and the authorization may only be 
refused for prudential reasons.  
4.51.  Article 7 on financial services exceptions provides that nothing in the Chapter shall prevent 
a Party from taking measures necessary to secure compliance with its laws or regulations 
consistent with the Chapter, including those relating to deceptive and fraudulent practices and 
other matters listed in the Article.  
4.52.   Article 8 establishes obligations in order to ensure that measures of general application 
adopted or maintained by a Party or self-regulatory organisations are promptly published or 
otherwise made publicly available, the provision of enquiry points (Article 8.2), and the provision and content of written administrative decisions on applications to provide financial services 
(Articles 8.7 and 8.8). 
4.53.  Article 10 provides that arbitral tribunals to adjudicate disputes on prudential issues and 
other financial matters, and any procedures agreed for good offices, conciliation or mediation on 
such matters, must have the necessary expertise relevant to the specific financial service under 
dispute.  
4.7.2  Telecommunications 4.54.  Chapter 9 deals with Telecommunications. In Article 9.1 the Parties set out the objective of 
the Chapter which is to make additional commitments which are consistent with and build on the 
GATS Annex on Telecommunications and the WTO Telecommunications Reference Paper that will 
further liberalize and promote competition in the Parties' telecommunications markets. To this end, 
the Parties commit to: ensure that anti-competitive conduct does not hinder new entrants to the 
telecommunications market; the provision of access to critical parts of telecommunications WT/REG340/1 
 
- 32 - 
 
 networks within their territory to suppliers of telecommunications networks or services of the other 
Party and; ensure that regulatory decisions are clear, timely and transparent.  
4.55.  As outlined in Article 9.2 – Scope – the Chapter applies to measures affecting trade in 
telecommunication services, but not to measures affecting the distribution of broadcasting and 
audio-visual services, as defined in each Party's laws and regulations. Definitions are provided in 
Article 9.3. Section A of the Chapter sets out the provisions dealing with access to and use of public telecommunications networks or services. In addition to the provisions on access and use as 
defined in the GATS Annex, the Parties permit the provision of services to individual or multiple 
end users over leased or owned circuits, and the performance of switching, signalling, processing, 
and conversion functions. In addition to taking  measures as in the GATS Annex to ensure the 
security and confidentiality of messages, the Parties may also protect the privacy of personal data 
of end users of public telecommunications networks or services.  
4.56.  Section B of the Chapter addresses obligations relating to suppliers of public 
telecommunications networks or services. Suppliers are obliged to ensure interconnection 
(Article 9.5), number portability (Article 9.6), and dialling parity (Article 9.7). Where a Party 
authorizes a supplier of public telecommunications networks or services to operate a submarine cable system as a public telecommunications service, it shall ensure reasonable and non-
discriminatory treatment with respect to access to submarine cable systems within its territory. 
Article 9.9 provides for general competitive safeguards in the event of anti-competitive practices. 
4.57.  Section C of the Chapter addresses additional obligations relating to major suppliers of 
public telecommunications networks or services. Article 9.11 provides for competitive safeguards 
to prevent major suppliers, alone or together, from engaging in anti-competitive practices.
18 Other 
provisions of Section C relate to resale, unbund ling of network elements, interconnection with 
major suppliers, provisioning and pricing of leased circuit services, co-location, access to facilities, 
and denial of access.  
4.58.  Section D addresses other measures. The Parties shall ensure that any telecommunications 
regulatory body that it establishes or maintains is separate from, and not accountable to, any 
supplier of public telecommunications networks or services. Any universal service obligation should 
be administered in a transparent, non-discriminatory and competitively neutral manner and not be more burdensome than necessary. Article 9.21 requires that Parties ensure that licensing procedures and requirements are publicly available. The Parties agree to administer their 
procedures for the allocation and use of scarce telecommunications resources, including 
frequencies and numbers, in an objective, timely, transparent, and non-discriminatory manner. Article 9.23 provides that the relevant bodies of the Parties are to be provided with the authority 
to enforce compliance with measures relating to the obligations set out in Articles 9.4 to 9.17. 
Effective sanctions may include financial penalties, injunctive relief, or the modification suspension and revocation of licenses. Article 9.24 provid es for the resolution of telecommunications 
complaints and disputes. In Article 9.25 the Part ies agree to provide for the transparency of 
measures relating to telecommunications. Further ar ticles of Section D relate to flexibility in the 
choice of technologies, industry participation, co nsultation and cooperation. In the event of any 
inconsistency between the Telecommunications Chapter and another Chapter of the Agreement, 
the former prevails to the extent of the inconsistency.  
4.7.3  Electronic Commerce 4.59.  Electronic Commerce is the subject of Chapter 15. The objectives of the Chapter are to 
promote electronic commerce among the Parties and the wider use of electronic commerce 
globally. The Parties affirm that measures affect ing the supply of a service delivered or performed 
electronically are subject to the obligations contained in the relevant provisions of the Trade in 
Services Chapter and its Annex on Financial Services and the Chapter on Telecommunications 
Services, subject to any applicable exceptions included in the Agreement.  
                                               
18 Such anti-competitive practices include engaging in anti-competitive cross-subsidization; using 
information obtained from competitors with anti-competitive results; and not making available, on a timely 
basis, to suppliers of public telecommunications netw orks or services, technical information about essential 
facilities and commercially relevant information that are necessary for th em to provide services. WT/REG340/1 
 
- 33 - 
 
 4.60.  The Parties agree not to impose customs du ties on electronic transmissions between them. 
Article 15.5 requires each Party to maintain laws and regulations based on the UNCITRAL Model 
Law on Electronic Commerce (1996) . Article 15.6 requires each Party to maintain measures for 
electronic authentication that permit Parties to electronic transactions to determine the appropriate 
authentication technologies and implementation models for their electronic transactions, and do 
not limit the recognition of such technologies and implementation models; and have the opportunity to prove that their electronic transactions comply with the Party's laws and 
regulations. The Parties agree to work towards the mutual recognition of digital certificates at 
government level based on internationally accepted standards and to encourage the interoperability of digital certificates in the business sector. 
4.61.  Article 15.7 concerns online customer protection using electronic commerce and requires 
the Parties to ensure protection at least equivalent to that provided customers of other forms of 
commerce under relevant laws and conditions. Article 15.8 requires the Parties to ensure appropriate protection for the personal data of users of electronic commerce, with reference to 
appropriate international standards. Article 15.9 exho rts the Parties to accept the electronic format 
of trade administration documents as the legal equivalent of paper documents except where there is a domestic or international legal requirement to the contrary or doing so would reduce the 
effectiveness of the trade administration process. The Parties agree to: cooperate bilaterally and in 
international fora to enhance the acceptance of electronic versions of trade administration documents; to take into account the methods agreed by international organizations when implementing initiatives which provide for the use of paperless trading and; to endeavour to make 
all trade administration documents available to the public in electronic form. 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  Chapter 17 concerns Transparency. The Part ies shall ensure that their laws, regulations, 
procedures and administrative rulings of general application
19 with respect to any matter covered 
by the Agreement are promptly published in such a manner as to enable interested persons of the 
other Party to become acquainted with them. To the extent possible each Party shall (a) publish in 
advance any measure that it proposes to adopt, and (b) provide interested persons and the other 
Party with a reasonable opportunity to comment on such proposed measures.  
5.2.  The Parties agree to notify each other of any proposed or actual measure that might 
materially affect the operation of the Agreement or otherwise substantially affect the other Party's 
interests under the Agreement, including responding to questions from the other Party about proposed or actual measures (Article 17.4). Article 17.5 concerns administrative proceedings. It 
provides that each Party shall ensure that in its administrative proceedings (a) where possible, 
persons of the other Party directly affected by a proceeding are provided reasonable notice when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the 
legal authority under which the proceeding is initiated, and a general description of any issues 
under question, (b) such 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 interest permit, and (c) its procedures are in accordance 
with domestic law.  
5.3.  Article 17.6 concerns review. Each Party shall maintain judicial, quasi-judicial or 
administrative tribunals or procedures for the pu rpose of the prompt review and, where warranted, 
correction of final administrative actions regarding matters covered by the Agreement. Such 
tribunals shall be independent of the authority entrusted with administrative enforcement and have no substantial interest in the outcome of th e matter. Article 17.6.2 requires that the Parties 
to any proceedings in any such tribunals or procedures are provided with the right to a (a) 
reasonable opportunity to support or defend their respective positions, and (b) a decision based on the evidence and submissions of record.  
                                               
19 The phrase "administrative ruling of  general application" is defined in  Article 17.2 of the Agreement.   WT/REG340/1 
 
- 34 - 
 
 5.2  Current payments and capital movements 
5.4.  The footnote to Article 8.5.1 provides that if a Party undertakes a market access commitment 
on modes 1 or 3 in relation to the supply of a service, the Party is committed to allow the related cross-border movement or transfer of capital. 
5.5.  Article 8.14 of the Agreement concerns  payments and transfers. Except under the 
circumstances envisaged (balance of payments and exceptions), a Party shall not apply restrictions on international transfers and payments for current transactions relating to its specific 
commitments.  
5.3  Exceptions 5.6.  Chapter 18 sets out general provisions an d exceptions. Article 18.1, on general exceptions, 
provides that for the purposes of Chapter 2 (Trade  in Goods), Chapter 3 (Rules of Origin), Chapter 
4 (Customs Procedures and Cooperation), Chapter 5 (SPS Measures), Chapter 6 (Standards, 
Technical Regulations and Conformity Assessment Procedures), Article XX of the GATT 1994 is incorporated into the Agreement.  
5.7.  Article 18.1.2 provides that for the purposes of Chapter 8 (Trade in Services), Chapter 9 
(Telecommunications Services), Chapter 10 (Movement of Natural Persons) and Chapter 15 (Electronic Commerce) Article XIV of the GATS and its footnotes are incorporated into the 
Agreement. Article 12.18 of the Chapter on Investment contains a general exceptions provision 
along the lines of GATS Article XIV and XIV bis and including provisions for the protection of 
national treasures of artistic, historic or archaeological value or to conserve exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic 
production or consumption. 
5.8.  Article 18.2 describes security exceptions. Article 18.3 on taxation measures provides that 
nothing in the Agreement shall apply to taxation measures, except where corresponding rights and 
obligations are also granted or imposed under th e WTO Agreement or where they are granted or 
imposed under Articles 12.8 (Expropriation) or 12.9 (Transfers). Article 18.3.4 deals with double taxation conventions.  
5.4  Accession and Withdrawal 
5.9.  There are no provisions on accession to the Agreement. 5.10.  Article 21.8 provides that either Party may terminate the Agreement upon 180 days 
advance written notice to the other Party.  
5.5  Institutional framework 
5.11.  The Parties establish an FTA Joint Commiss ion whose main functions include reviewing the 
implementation and operation of the Agreement; considering any matter relating to the 
implementation of the Agreement; establishing, as  appropriate, subsidiary bodies and supervising 
and coordinating their work; adopting as appropriate any decision or recommendation of any subsidiary body; reporting to the Joint Trade Committee; and carrying out any other functions 
(Article 19.1). The FTA Joint Commission may expl ore measures for the further expansion of trade 
and investment between the Parties and seek to resolve difference of disputes that may arise 
regarding the interpretation or application of the Agreement. 
5.6  Dispute settlement 
5.12.  Chapter 20 on Consultations and Dispute Settlement contains five Sections (introduction, 
consultation, adjudication, implementation, and final provisions) and an Annex on the rules of procedure for arbitral tribunal proceedings.  
5.13.  Definitions used in the Chapter are set ou t in Article 20.2. Article 20.3 provides that the 
Chapter applies to the avoidance or settlement of disputes arising under the Agreement, subject to WT/REG340/1 
 
- 35 - 
 
 such special and additional provisions on dispute settlement contained in other Chapters, but does 
not apply to disputes under Chapter 5 (SPS), Ch apter 14 (Competition), Chapter 15 (Electronic 
Commerce) and Chapter 16 (Economi c and Technical Co-operation).  
5.14.  Article 20.5 provides that where a di spute arises under the Agreement and another 
international agreement to which the Parties are party, the Complaining Party may select the 
forum. That forum shall then be used to the excl usion of other possible fora in respect of that 
matter.  
5.15.  Article 20.6 sets out the procedure for consultations with respect to a dispute under the 
Chapter. Upon receipt of a request for consultation s, the Responding Party shall reply within seven 
days and enter into consultations within (a) 10 days in cases of urgency, including perishable goods, or (b) 30 days. Article 20.7 permits the Parties, at any time, to agree to good offices, 
conciliation or mediation. 
5.16.  Section C sets out the adjudication provisions of Chapter 20. A Party may refer the 
complaint to the FTA Joint Commission if consultations fail to resolve a nullification or impairment 
complaint under the timeframes and circumstances set out in the Agreement. A Party may request 
the establishment of an arbitral tribunal per Article 20.9 if (a) the Responding Party fails to enter into consultations in accordance with Article 20.6. 4, or (b) if consultations fail to resolve the a 
dispute within 20 days of receipt of request (urgency/perishable goods) or 60 days or such other 
period agreed between the Parties.  
5.17.  Article 20.10 sets out the procedures for the establishment and reconvening of arbitral 
tribunals. An arbitral panel shall consist of 3 arbitrators, appointed and nominated per 
Articles 20.10.9 and 20.10.10. In the event that  the Parties cannot reach agreement about the 
arbitrators to be appointed to an arbitral tribuna l Article 20.10.7 permits the Parties to request the 
Director-General of the WTO make the appointments. Once composed, the functions, terms of 
reference, report and working method of the arbi tral tribunal must comply with the requirements 
of Article 20.11, including a provision that an arbitral tribunal shall make its findings by consensus, or if unable to do so, by majority vote. The proc edures of the tribunal are set out in Article 20.12 
and the Annex on Rules of Procedure for Arbitral Tribunals Proceedings. Article 20.12 permits the 
tribunal, upon request by a Party or on its own initiative, and in consultation with the Parties, to adopt additional rules of procedure which do not co nflict with the provisions of the Chapter or the 
Rules of Procedure Annex. The timetable for the arbitral tribunal process, from the date of 
establishment until the date of the final report shall, as a general rule, not exceed a period of nine 
months, unless the Parties agree otherwise. Arbitral proceedings are confidential and hearings are held in closed session unless the Parties agree otherwise. Written submissions to the arbitral 
tribunal are treated as confidential, but will be made available to the Parties. Parties are not 
precluded from disclosing statements of their ow n position to the public. A non-confidential 
summary that could be disclosed to the public is to  be provided by the other Party, upon request. 
The arbitral tribunal shall provide an interim report at least four weeks before the deadline for 
completion of the final report. A Party may, seven days after the final report is presented to the Parties, or any time thereafter, make the report pu blicly available subject to the protection of any 
confidential information contained therein. The Parties may agree that the arbitral tribunal suspend 
its work at any time for a period not exceedin g 12 months from the date of such agreement 
(unless agreed otherwise), to be resumed upon request by either Party. 
5.18.  Section D concerns Implementation. Article 20.14.1 provides that where an arbitral tribunal 
finds that the Responding Party has failed to ca rry out its obligations under the Agreement, the 
Responding Party shall comply with its obligations under the Agreement. Article 20.14.2 provides that within 30 days of the presentation of the final report to the Parties, the Responding Party shall 
notify the Complaining Party of its intentions with respect to implementation, whether the 
implementation can take place immediately and if not, the reasonable period of time needed to 
implement. The "reasonable period of time" shall,  whenever possible, be mutually agreed by the 
Parties. If the Parties are unable to agree on the reasonable period of time, either Party may 
request the chair of the arbitral tribunal to determine it. As a guideline, the period should not 
exceed 15 months from the date of the arbitral tribunal's final report, but may be longer or shorter. Compliance Reviews and the composition and constitution of a Compliance Review 
Tribunal are described in Article 20.15.  WT/REG340/1 
 
- 36 - 
 
 5.19.  Article 20.16 concerns Compensation and Suspension of Concessions or other obligations. 
These are temporary measures available in the event that the Responding Party does not comply 
with its Implementation obligations under Article 20.14, however neither compensation nor the suspension of concessions or other obligations is preferred to compliance with the obligation under 
Article 20.14. Compensation is voluntary, and, if granted, shall be consistent with the Agreement. 
If no satisfactory compensation has been agreed within 30 days of a request for negotiations for compensation, the Complaining Party may then notify the Responding Party that it intends to 
suspend the application of the concessions or other obligations under the Agreement to the level of 
nullification and impairment, with effect 30 days from such notification. Further disciplines on the right of the Complaining Party to suspend the appl ication of concessions or other obligations and 
the role of the arbitral panel to examine the same are set out in Article 20.16.4 - 20.16.11. 
5.20.  Section E sets out final provisions including expenses (unless agreed otherwise, each Party 
shall bear the costs of its appointed arbitrator and its own expenses and legal costs and share the 
costs of the chair of the arbitral tribunal and other expenses) and contact points. 
5.7  Relationship with other agreements concluded by the Parties 
5.21.  In Article 21.2 the Parties reaffirm their rights and obligations under the WTO Agreement 
and other agreements to which both Parties are party. Article 21.2.2 provides that nothing in the 
Agreement shall be construed to derogate from an y right or obligation of a Party under the WTO 
Agreement and other agreements to which the Partie s are party. Article 21.2.3 provides that in the 
event of an inconsistency between this and any other agreement to which both Parties are party, they shall immediately consult with a view to finding a mutually satisfactory solution.  
5.22.  Article 21.3 provides that if any international agreement or part thereof referred to in the 
Agreement is amended the Parties shall consult on whether it is necessary to amend the Agreement unless the Agreement provides otherwise. 
5.23.  Table 5.1 below sets out other regional trade agreements to which the Parties are party.  
Table 5.1 Australia and Malaysia: Participat ion in other regional trade agreements 
(notified and non-notified, in force), as of 8 April 2014 
RTA Name Date of 
entry into 
force Coverage Year of 
notification WTO Legal Cover 
Australia 
ASEAN - Australia - New 
Zealand 01-Jan-10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
Australia - Chile 06-Mar-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V 
Thailand - Australia 01-Jan-05 Goods & Services 2004 GATT Art. XXIV & GATS Art. V 
US - Australia 01-Jan-05 Goods & Services  2004 GATT Art. XXIV & GATS Art. V 
Singapore - Australia 28-Jul-03 Goods & Services 2003 GATT Art. XXIV & GATS Art. V 
Australia - New Zealand 
(ANZCERTA) 01-Jan-83  
01-Jan-89 Goods 
Services 1983 
1995 GATT Art. XXIV  
GATS Art. V 
South Pacific Regional Trade 
and Economic Cooperation 
Agreement (SPARTECA) 01-Jan-81 Goods 1981 Enabling Clause 
Australia - Papua New Guinea (PATCRA) 01-Feb-77 Goods 1976 GATT Art. XXIV 
Malaysia 
Chile - Malaysia 25-Feb-12 Goods 2013 GATT Art. XXIV 
India - Malaysia 01-Jul-11 Goods & Services 2011 Enabling Clause & GATS Art. V 
New Zealand - Malaysia 01-Aug-10 Goods & Serv ices 2012 GATT Art. XXIV & GATS Art. V 
ASEAN - Australia - New 
Zealand 01-Jan-10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
ASEAN - India 01-Jan-10 Goods 2010 Enabling Clause 
ASEAN - Korea, Republic of 01-Jan-10  
01-May-09 Goods  
Services 2010 GATT Art. XXIV & Enabling 
Clause &GATS Art. V WT/REG340/1 
 
- 37 - 
 
 
RTA Name Date of 
entry into 
force Coverage Year of 
notification WTO Legal Cover 
ASEAN - Japan 01-Dec-08 Goods 2009 GATT Art. XXIV 
Pakistan - Malaysia 01-Jan-08 Goods & Services 2008 Enabling Clause & GATS Art. V 
Japan - Malaysia 13-Jul-06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
ASEAN - China 01-Jan-05  
01-Jul-07 Goods  
Services 2005 
2008 Enabling Clause 
GATS Art. V 
ASEAN Free Trade Area 
(AFTA) 28-Jan-92 Goods 1992 Enabling Clause 
Global System of Trade 
Preferences among 
Developing Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
 
Source: WTO Secretariat.  
5.8  Government procurement 
5.24.  There are no provisions on government procurement in the Agreement. 
5.9  Competition 
5.25.  Chapter 14 concerns Competition. The Parties recognize the importance of promoting 
competition and of curtailing anti-competitive practices20 which have the potential to undermine 
the objectives of the Agreement (Article 14.1) . The Parties agree to promote competition by 
adopting, maintaining and enforcing measures as appropriate to address anti-competitive practices in their territory (Article 14.3). They agree to ensure that all commercial activities are subject to generic or relevant sectoral competition measures  in force in their territory. Any measures taken 
to proscribe anti-competitive practices are to be in  accordance with the principles of transparency, 
timeliness, non-discrimination and procedural fairness (Article 14.4.1-2). The Parties agree to apply competition measures to address anti-competitive conduct to the business activities of 
government-owned and non-government-owned businesses (Article 14.4.3). A Party may exempt 
specific businesses or sectors from the application of competition measures, provided that such exemptions are transparent and are undertaken on th e grounds of public policy or public interest 
(Article 14.5). The Parties agree to cooperate and coordinate on competition policy, including 
through the exchange of information, notification, consultation and coordination on cross-border enforcement matters (Article 14.6). 
5.26.  In Article 8.12 the Parties recognize that certain business practices of service suppliers other 
than those falling under Article 8.11 (Monopoly and Exclusive Services Suppliers), may restrain 
competition and thereby restrict trade in services. Each Party shall, at the request of the other Party, enter into consultations with a view to eliminating monopoly business practices upon 
request. 
5.10  Intellectual property rights 5.27.  Chapter 13 concerns Intellectual Property (IP). In Article 13.1 the Parties confirm their 
commitment to reducing impediments to trade an d investment by promoting deeper economic 
integration through effective and adequate creation, utilisation, protection and enforcement of intellectual property rights and the need to main tain an appropriate balance between the rights of 
intellectual property owners and the legitimate interests of users in IP matters.  
5.28.  The Parties agree to comply at a minimum with the provisions of Chapter 13 and may 
provide additional protection and en forcement of IP rights as long as they are not inconsistent with 
the Chapter (Article 13.3). In Article 13.4, each Party affirms its rights and obligations under the 
TRIPS Agreement and to other agreements to which it is party. The Parties agree to ratify or 
accede, in accordance with domestic processes and as soon as practicable, to the WIPO Copyright 
                                               
20 Anti-competitive practices are defined in Article 14.2 as business conduct or transactions that 
adversely affect competition including anti-competitive horizontal arrangements between competitors, abuse of 
dominant position, and anti-compe titive vertical arrangements. WT/REG340/1 
 
- 38 - 
 
 Treaty (1996) ; the WIPO Performances and Phonograms Treaty (1996) ; the Protocol Relating to 
the Madrid Agreement Concerning the International Registration of Marks (1989) ; and the 
Singapore Treaty on the Law of Trademarks (2006) . In Article 13.5 each Party agrees to accord to 
nationals of the other Party treatment no less favourable than it accords to its own nationals with 
regard to protection
21 of intellectual rights, subject to the exceptions provided in the multilateral 
agreements concluded under the auspices of WIPO to which the Parties are, or become, party.  
5.29.  The Parties agree to make patent and trade mark databases available on the internet 
(Article 13.6). They agree to work towards harmonizing their IP measures with international 
norms, to participate in international fora (particularly WIPO and the WTO) to work toward reforming and further developing the international IP system, and to work together to reduce differences between their respective intelle ctual property measures (Article 13.7). 
5.30.  Further articles of Chapter 13 deal with presumptive validity (Article 13.8), and protection of 
trademarks and geographical indications (Articles 13.9-13.10). Provisions concerning patents and copyright management are contained in Articles  13.11-13.16. On enforcement, the Parties agree 
to provide, at a minimum, for criminal procedures and penalties in cases where a person 
intentionally, knowingly or recklessly engages in trade mark counterfeiting or copyright piracy on a commercial scale and to apply higher criminal pena lties to IP offences committed by corporations 
than to those committed by individuals (Article 13.18). Articles 13.19 and 13.20 relate to the 
protection of encrypted programme-carrying satellite signals and border measures. The Parties agree to cooperate on enforcement of IP rights which may include notification of contact points, exchange of information concerning infringement of IP rights, policy dialogue on initiatives for 
enforcement of IP rights in multilateral and regional fora, and other initiatives as may be mutually 
determined (Articles 13.21 and 13.22). The Parties agree to enter into technical consultations at the written request of the other Party to addr ess any matter arising under the IP Chapter 
(Article 13.23). 
5.11  Economic and Technical Cooperation 5.31.  Chapter 16 of the Agreement deals with economic and technical cooperation. The Parties 
agree to establish a framework for economic and technical cooperation as a means to expand and 
enhance the benefits of the Agreement and to promote capacity building activities in areas of mutual interest taking into account existing ec onomic and technical cooperation arrangements and 
activities between them. They agree to give particular attention to automotive, agriculture, 
tourism, clean coal technology and electronic commerce. The details of such cooperation shall be 
set out in the Implementing Arrangement for Economic and Technical Cooperation activities. The Implementing Arrangement annexed to the Agreem ent outlines the understanding of the Parties 
with regard to specific economic and technical cooperation in the five activities noted above. 
5.32.  Other possible areas of cooperation are outlined in Article 16.2.3. Article 16.3 sets out the 
forms of cooperation which may include (a) exchanging information on developments in areas of 
mutual interest (b) encouraging and facilitating visits and exchanges of experts (c) promoting the 
holding of seminars and workshops (d) promoting and encouraging cooperation between the private sectors of the Parties, and (e) other forms of cooperation as mutually agreed. The costs of 
cooperation shall be borne by the Parties within the limits of their own capacities in an equitable 
manner to be mutually agreed. The FTA Joint Co mmission shall oversee cooperation between the 
Parties and may delegate its functions to a subsidiary body. 
5.33.  The Implementing Arrangement for Economic and Technical Cooperation Activities in Agreed 
Areas Pursuant to Chapter 16 sets out understandings on specific economic and technical 
cooperation activities to give initial effect to Chapter 16. The section of the Implementing Arrangement on Automotive Cooperation provides for the establishment of a Malaysia-Australia 
Automotive Industry Dialogue (MAAID) to provide a forum to enhance engagement and 
cooperation between the Malaysian and Australian automotive industries and to facilitate joint government and industry consultations on future cooperation. The MAAID held its inaugural meeting in Melbourne in November 2012 with participation from both governments and from the 
full range of industry in the two countries as well as research organizations. 
                                               
21 A footnote to Article 13.5 sets out a definition of the term "protection".  WT/REG340/1 
 
- 39 - 
 
 5.12  Environmental Issues 
5.34.  In a side letter on environmental issues the Parties confirm their shared commitment to 
environmental protection, their interest in cooperat ion on environmental issues of mutual interest 
and their commitment to ensuring that environmental laws, regulations, rules or policies are not 
used for trade protectionist purposes nor envi ronmental standards weakened to gain a trade 
advantage. The Parties agree that once the Tran s Pacific Partnership Agreement (TPP) has been 
ratified by both countries they will be bound by the outcome of these negotiations. They agree that 
inclusion of environmental provisions in the Agreement will be reviewed no later than two years 
after the entry into force of the Agreement,  or at such time as the Parties agree. 
5.13  Labour Provisions 5.35.  In a side letter on labour provisions the Parties affirm their interest in facilitating 
cooperation and consultation on labour issues of mutual interest. They recognize each Party's 
responsibility to adopt, administer and enforce its own labour laws, regulations and practices to ensure that they are not used for trade protectionist purposes or labour standards weakened to 
gain a trade advantage. The Parties agree that once  TPP has been ratified by both countries they 
will be bound by the outcome of these negotiations . They agree that inclusion of labour provisions 
in the Agreement will be reviewed no later th an two years after the entry into force of the 
Agreement, or at such time as the Parties agree. WT/REG340/1 
 
- 40 - 
 
 
ANNEX 1 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on M FN imports is shown in Tables A1.1 (Australia) 
and A1.2 (Malaysia), by agricultural (WTO definition), non-agricultural and total products. Applied 
MFN duty rates in 2013 serve as a comparison.  
2. Australia's overall average applied MFN tariff rate in 2013 was 2.8%. The average applied 
tariff on agricultural goods was 1.3%, compared  to an average applied tariff of 3% on non-
agricultural products. Duty-free tariff lines accounted  for 47.6% of all tariff lines. As of the entry 
into force of the Agreement, Malaysian exporters enjoy duty-free access in all goods.  
Table A1.1 Australia: Indicators of MFN tari ff rates and 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 
(%) Overal
l (%) On 
dutiable 
(%) 
MFN 2013 2.8 5.3 47.6 1.3 5.0 73.0 3.0 5.4 43.6 
Malaysia 2013 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a WTO Definition. 
 Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. 
 Based on the HS 2012 nomenclature.   Source:  WTO estimates based on data from WTO- IDB and information from Australian authorities. 
 
3. Malaysia's average applied MFN rate in 2013 was 5.6%. The average applied tariff on 
agricultural products was 2.9% compared to an average applied tariff of 6% for non-agricultural products. Duty-free tariff lines accounted for 64.6% of all tariff lines. Upon entry into force of the 
Agreement, Australian exporters enjoyed a relative margin of preference of 72.4% for agricultural 
goods vis-à-vis  the prevailing MFN tariff in 2013, and 91.7% for non-agricultural goods. Overall, 
Australian exporters enjoyed a margin of preference of 91.1% vis-à-vis  the prevailing average 
applied MFN tariff. By the end of the transi tion period, the share of duty free lines vis-à-vis  
Australia is scheduled to increase to 99% of the total tariff, of which 94% will be for agricultural lines and 99.8% for non-agricultural lines.  
Table A1.2 Malaysia: Indicators of MFN tariff rates and preferential rates for imports 
from Australia 
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 2013 5.6 15.9 64.6 2.9 10.7 70.9 6.0 16.4 63.6 
Australia 2013 0.5 14.2 96.0 0.8 11.5 89.7 0.5 15.2 97.0 
 2014 0.4 11.9 96.3 0.7 11.7 90.8 0.3 12.0 97.1 
 2015 0.3 8.9 96.6 0.6 12.0 91.6 0.2 8.0 97.4 
 2016 0.1 13.9 98.7 0.5 15.2 93.4 0.1 12.3 99.6 
 2017 0.1 13.6 98.8 0.5 15.2 93.4 0.0 11.5 99.6 
 2018 0.1 13.6 98.8 0.5 15.2 93.4 0.0 11.5 99.6 
 2019 0.1 13.6 98.8 0.5 15.2 93.4 0.0 11.5 99.6 
 2020 0.1 15.2 98.9 0.5 15.2 93.4 0.0 15.0 99.8 
 2021 0.1 15.2 98.9 0.5 15.2 93.4 0.0 15.0 99.8 
 2022 0.1 15.2 98.9 0.5 15.2 93.4 0.0 15.0 99.8 
 2023 0.1 14.0 98.9 0.5 13.6 93.4 0.0 15.0 99.8 
 2024 0.1 12.9 98.9 0.4 11.9 93.4 0.0 15.0 99.8 WT/REG340/1 
 
- 41 - 
 
 
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 
(%) 
 2025 0.1 11.7 98.9 0.4 10.2 93.4 0.0 15.0 99.8 
 2026 0.1 12.0 99.0 0.3 10.3 94.0 0.0 15.0 99.8 
a WTO Definition. 
 Note: Tariff lines subject to in-quota rates are excl uded in the computation; for the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included. 
Product coverage is from HS chapters 1-97. 
 Based on the HS 2012 nomenclature.   Source:  WTO estimates based on data pr ovided by Malaysia and TPR database. 
 
4. Table A1.3 shows the market access opportunities in Australia for Malaysia's top 25 exports, 
which in 2010-2012 accounted for an average of 54.3% of Malaysia's global exports. The table 
shows in which year all HS 8-digit tariff lines co rresponding to the product definition will become 
duty free in Australia.  
5. Malaysia's top 25 exports cover a total of 47 HS lines of which 38 were already duty-free on 
an MFN basis in 2013. Upon entry into force of  the Agreement, the remaining nine lines will 
become duty-free.  
Table A1.3 Australia: Market access opportuni ties under the agreement for Malaysia's 
top 25 exports to the world 
Malaysia's top export products in 2010-2012 Access Conditions to Australia's import 
markets 
MFN (2013)  
Duty-
free  
in 
2013 HS number and description of the product 
Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff lines 
Duty-
free Dutiable 
271111 natural gas 7.1 0.0 1   
854231 processors and controllers 6.8 0.0 1   
151190 other 5.3 0.0 1   
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 4.7 0.0 2   
271019 other 3.6 0.0 12   
847330 parts and accessories of the machines 
of heading 84.71 3.4 0.0 1   
854239 other 2.8 0.0 1   
847170 storage units 2.5 0.0 1   
852872 other, colour 1.9 5.0  1 1 
151110 crude oil 1.6 0.0 1   
271012 light oils and preparations 1.6 0.0 5   
400122 technically specified natural rubber  1.4 0.0 1   
401519 other 1.3 5.0  2 2 
847180 other units of automatic data 
processing machines 1.2 0.0 1   
854140 photosensitive semiconductor devices 1.2 0.0 1   
151620 vegetable fats and oils and their 
fractions 1.1 0.0 1   
854290 parts 1.0 0.0 1   
854129 other 0.9 0.0 1   
853710 for a voltage not exceeding 1,000 v 0.8 2.5 1 1 1 
854232 memories 0.8 0.0 1   
711319 of other precious metal, whether or not 
plated or clad with precious metal 0.8 5.0  1 1 
852990 other 0.6 2.5 2 2 2 
853690 other apparatus 0.6 2.5 1 1 1 
400599 other 0.6 5.0  1 1 WT/REG340/1 
 
- 42 - 
 
 
Malaysia's top export products in 2010-2012 Access Conditions to Australia's import 
markets 
MFN (2013)  
Duty-
free  
in 
2013 HS number and description of the product 
Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff lines 
Duty-
free Dutiable 
854190 parts 0.5 0.0 1   
Total of above 54.3  38 9 9 
Note: Based on the HS 2012 nomenclature. 
 Source: WTO estimates based on data from WTO-IDB, information from Australian authorities and UNSD, 
Comtrade database.  
 
6. Table A1.4 below shows market access opportunities for Australia's top 25 exports, which in 
2013 accounted for 72.2% of Australia's exports. In 2013, 45 tariff lines were duty free on an MFN 
basis, with 52 dutiable. As a result of the Agreem ent a further 50 tariff lines will become duty free, 
with two remaining dutiable at the end of the implementation period.  
Table A1.4 Malaysia: Market access opportuni ties under the agreement for Australia's 
top 25 exports to the world  
Australia's top export products in 2010-2012 Access Conditions to Malaysia's import 
markets 
MFN (2013)Duty-free 
in 
Remain 
dutiable HS number and description of the product 
Share in 
global 
exports 
(%) Avera
ge 
MFN 
appli
ed 
rate 
(%) No. of 
tariff lines 
Duty-free 
Dutiable 
2013 
2016 
260111 non-agglomerated 22.7 0.0 2     
270112 bituminous coal 17.7 0.0 1     
710813 other semi-manufactured forms 5.9 0.0 1     
271111 natural gas 4.6 0.0 1     
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 4.4 2.5 1 1 1 
  
260300 Copper ores and concentrates. 2.1 0.0 1     
281820 aluminium oxide, other than artificial 
corundum 2.1 0.0 1  
   
300490 other 1.2 0.0 6     
740311 cathodes and sections of cathodes 1.2 0.0 1     
760110 aluminium, not alloyed 1.1 0.0 1     
020230 boneless 1.1 0.0 1     
510111 shorn wool 0.9 0.0 1     
100199 other 0.9 0.0 2     
520100 Cotton, not carded or combed. 0.9 0.0 1     
020130 boneless 0.7 0.0 1     
220421 in containers holding 2 l or less 0.6 0.0  2   2 
260800 Zinc ores and concentrates. 0.6 0.0 1     
260200 Manganese ores and concentrate,  0.6 0.0 1     
760120 aluminium alloys 0.5 0.0 1     
260700 Lead ores and concentrates. 0.5 0.0 1     
120510 low erucic acid rape or colza seeds 0.4 0.0 1     
870323 of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc  
0.4  
23.8   
48 36 12  
260400 Nickel ores and concentrates. 0.4 0.0 1     
261690 other 0.4 0.0 3     
271019 other 0.4 0.3 14 1 1   
Total of above 72.2  45 52 38 12 2 
Note: Based on the HS 2012 nomenclature.  Source: WTO estimates based on data provided by Ma laysia, TPR database and UNSD, Comtrade database.  
__________