WT/COMTD/RTA/5/2  
 
4 September 2013  
(13-4685)  Page: 1/2  
Committee on Trade and Development 
Dedicated Session on Re gional Trade Agreements  Original: English  
 
  
FREE TRADE AGREEMENT BETWEEN INDIA AND MALAYSIA 
(GOODS) 
QUESTIONS AND REPLIES 
 
 The following communication, dated 4 September 2013, is being circulated at the request of the delegations of India and Malaysia.  
 The document reproduces the questions a ddressed to the Parties and the responses 
submitted.  
 
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Questions from the delegation of Turkey 
  
Question 1 
 
 3.1.2  Liberalization of trade and tariff lines 
 
Under this heading it is seen that tariffs will be reduced with a different timeframe. 
Would the parties kindly provide detailed information about how they made such a 
differentiation between the products consid ered under the scope of the Agreement? 
 
Reply: Each side has agreed to have different timeframes for reduction of its tariff during the 
negotiations owing to various domestic sensitivities. 
 
 Question 2 
 
 3.4.1.1  Sanitary and Phytosanitary Measures  
 
In paragraph 3.30 it is mentioned that "Artic le 6.11 also permits the inspection of goods 
in transit in the event of identifiable SP S risks". Could the parties elaborate on the 
conditions for "inspection of goods in tr ansit" and how will it be performed? 
 
Reply: The purpose of having Article 6.11 in the FTA is to provide freedom of transit for goods-in-
transit in accordance with Article V of GATT 1994. Both parties to the Agreement shall provide free 
transit to the goods of the other party which are meant to transit i.e. without inspection in the 
normal course. In the case of identifiable SPS risk, which will be worked out by both the parties, 
the inspection of goods may be carried out as decided by the parties when such a situation arises.  
 
Question 3 
 
 Import Restrictions and Licensing System of India in relation to Article 2.9 of 
Chapter 2 of the Agreement on Non-Tariff Measures WT/COMTD/RTA/5/2 
 
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  This Article states that: 
 1. The Parties shall not institute or maintain any non-tariff measures on the 
importation of goods from the other Party or on the exportation or sale for export of 
goods destined for the territory of the other Party, except in accordance with its WTO 
rights and obligations or other provisions in this Agreement. 
2. Each Party shall ensure the transparency  of its non-tariff measures allowed under 
paragraph 1 of this Article and their full co mpliance with its obligations under the WTO  
Agreement with a view to minimizing possi ble distortions to trade to the maximum 
extent possible. 
Will all the imports from Malaysia be exempt ed from the Import Restrictions such 
as quotas and Licensing Procedures of India?  If not will there be special treatment in 
quota allocation for imports from Malaysia?  
Reply: This is a general paragraph requiring both parties not to institute or maintain any non-tariff 
measure on their import and export, except in acco rdance with provisions of WTO, and to ensure 
transparency of its non-tariff measures. It does not provide any special exemptions to Malaysia 
from quota and licensing procedures.  
  
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