Call For "Hard Sell" Trade Pacts.

CHENNAI, June 21 (Bernama) - Trade agreement between any country needs to reach the business fraternity in order for it have an impact, said Malaysian External Trade Development Corporation chief executive officer Datuk Dr Wong Lai Sum.

"Those agreements are about the business people. Thus, it needs to reach them," she said.

The approach at times has to be driven by sectors, she said, adding that "hard selling" those agreements are the best way for it to give an impact.

"All government agencies has a hand in it, organisations like Matrade, Consul General as well as High Commissions. We can approach chambers and business associations to promote them," she told Bernama in an interview.

Such efforts are already ongoing and the momentum has to be sustained, said Wong.

Free Trade Agreements (FTAs) provide improved market access for various commercial and professional services.

It also provides for easier entry for businessmen as well as more predictable terms for investment in the FTA partner country.

As for India and Malaysia, there are two agreements that Malaysian and Indian businesses can benefit from, she said.

"Businesses should leverage on the benefits under the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA) as well as the Asean-India Free Trade Agreement," she said.

She said the tariff concession that Malaysia got from India was better compared with the one offered for the most favoured nation.

"Malaysian exporters are benefitting from the FTAs through preferential treatment and market access."

Malaysian exporters are enjoying cost savings from reduction or elimination of custom duties and from mutual recognition agreements, trade facilitating customs procedures and removal of onerous regulations, she added.

In 2012, total trade between Malaysia and India increased almost 10 per cent to reach US$13.3 billion.

Malaysia's export to India increased about four per cent to US$9.5 billion while imports rose almost 15 per cent to US$3.8 billion.

As of January to March 2013, total trade was up almost 21 per cent valued at US$1.2 billion.

Source : bernama.com.my