WT/REG330/M/1  
 
17 April 2014  
(14-2402)  Page: 1/2  
Committee on Regional Trade Agreements 
Seventy-second Session   
 
CONSIDERATION OF THE FREE TRADE AGREEMENT BETWEEN  
CHLE AND MALAYSIA, GOODS  
NOTE ON THE MEETING OF 8 APRIL 2014 
Chairman: Ambassador Francisco Lima Mena (El Salvador) 
1.1.  The 72nd Session of the Committee on Regional Trad e Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/4252/Rev.1 dated 28 March 2014. 
1.2.  Under Agenda Item B.II of this session, the CRTA considered the Free Trade Agreement 
(FTA) between Chile and Malaysia (hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement had entered into force on 25 February 2012 for 
Malaysia and 18 April 2012 for Chile. It had been notified to the WTO by the Parties on 
12 February 2013 under Article XXIV:7(a) of the GATT 1994 and the Understanding on the 
Interpretation of Article XXIV of GATT 1994 as an Agreement establishing a free trade area 
(document WT/REG330/N/1). The text of the Agreement was available, together with its Annex, on the Parties' official websites. The Factual Presentation on the goods aspect 
(document WT/REG330/1 dated 3 December 2013) had been prepared by the Secretariat on its 
own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agr eements (document WT/L/671). Written questions 
and replies on this Agreement had been distribu ted in document WT/REG330/2 dated 21 February 
2014. He proposed to organize the consideration of the Agreement by first asking the Parties and 
then other Members to give any general comments and then turn to the specifics of the Agreement, using the Factual Presentation, docu ment WT/REG330/1, to guide the debate. They 
would then go through the questions and replies document. 
1.4.  The representative of Malaysia thanked Members for their interest in the Malaysia-Chile Free 
Trade Agreement (MCFTA) through their written qu estions. The Parties had duly provided their 
responses which had been circulated to Members prior to the meeting. The MCFTA was another 
major step forward to increase bilateral trade and economic relations between the two countries as well as their two regions. It was Malaysia’s first FTA with a Latin American country and currently confined to trade in goods and economic cooperation. Malaysia’s bilateral trade with Chile had 
been growing since the implementation of the Agreement with total trade with Chile in 2013 
amounting to US$585.44 million, an increase of almost 76% as compared to 2012. Malaysia’s 
exports had expanded by 24% to US$163.85 million while imports had recorded a tremendous 
increase of 109% to US$421.62 million. The increased bilateral trade between the two countries 
was a testimony to the benefits of MCFTA which had contributed towards the enhancement of bilateral economic cooperation between the countries. Malaysia was fully committed to the 
consideration of the Agreement and hoped all WT O Members would benefit from this exercise. 
1.5.  The representative of Chile  thanked the Secretariat for preparing the Factual Presentation 
of the Free Trade Agreement between Chile and Malaysia (Goods) and Chinese Taipei and the 
Dominican Republic for their interest in the FT A and for their advance questions. Chile also 
expressed gratitude to colleagues from the Mission of Malaysia for their close and fruitful 
cooperation throughout the process. Chile especially appreciated their efforts, given that they had successfully undergone their 6
th Trade Policy Review a month before. WT/REG330/M/1 
 
- 2 - 
 
  1.6.  Trade relations between the two countries  had been marked by convergence on many 
economic issues; they both shared the benefi ts and advantages of international trade, 
as evidenced by their participation in the APEC forum and the TPP negotiations. The parties were aware that they must continue expanding thei r trade in order to exceed the 2013 figure of 
US$470 million. They hoped to generate more trad e opportunities for their business communities 
and diversify to achieve greater integration. As it  was, Malaysia and Chile already had agreements 
on double taxation, air services and free trade in goods. 
1.7.  The Free Trade Agreement between Chile and Malaysia was Chile's 23
rd agreement and 
Malaysia's 12th. The Agreement had entered into force on 25 February 2012 in Malaysia and 
on 18 April 2012 in Chile. Its aim was to create a free trade area that would increase trade and bolster its expansion in both countries. Th e Agreement consisted of 14 chapters and 
eight annexes, covering: (i) trade in goods, (ii) rules of origin, (iii) customs procedures, 
(iv) technical barriers to trade, (v) sanitary and phytosanitary measures, (vi) trade remedies, (vii) safeguards, (viii) cooperation, (ix) transpar ency and (x) dispute settlement. It also included 
an evolutionary clause to negotiate disciplines related to services and investments two years after 
the Agreement's entry into force.  
1.8.  Chile's liberalization schedule had four categories: liberalization immediately; in year three; 
in year five; and excluded products. It should be  noted that following the entry into force of the 
Agreement, 97.6% of Chile's tariff had become duty free for imports from Malaysia. In two more years, 7,629 tariff lines, or 98.9% of Chile's tariff, will have become duty free for imports from Malaysia, corresponding to almost 100% of its imports from Malaysia. He concluded by saying that 
Chile saw Southeast Asia as a dynamic and competitive region, with open markets and an 
optimum level of investment - hence Chile's desire to continue expanding the Agreement with Malaysia. 
1.9.  The representative of the United States thanked the Secretariat and the Parties for the 
materials provided which had facilitated consideration of the Agreement. The United States had no 
questions but noted that Chile had a number of no n-notified RTAs in force and hoped these would 
be notified soon. 
1.10.  The representative of the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu 
(TPKM) said her delegation had taken note of the response provided by the Parties that no 
meetings had been convened thus far for negotiations on services and investment. She asked 
whether the Parties had determined any timeline for such negotiations and clarified that the 
question would be sent to the Parties in writing. 
1.11.  The Chairman said that the consideration of the Goods Aspects of the Free Trade Agreement 
between Chile and Malaysia had allowed the Committee to clarify a number of questions and the 
oral discussion of this RTA could be concluded in accordance with paragraph 11 of the Transparency Mechanism. If any delegations wished to as
k follow up questions they were invited 
to forward submissions in writing to the Secret ariat by 14 April 2014 and Parties were asked to 
submit replies in writing by no later than 28 Ap ril 2014. In accordance with paragraph 13 of the 
Transparency Mechanism all written submissions, as well as minutes of this meeting would be circulated promptly, in all WTO official languages, and would be made available on the 
WTO website.  
1.12.  The Committee took note of the comments made. 
__________