Latest news with #TradeandInvestment
The Star
23-07-2025
- Business
- The Star
A sweet hit in New Zealand
JOHOR BARU: Johor is looking to tap into New Zealand's growing interest in tropical fruits from Malaysia, especially the MD2 pineapple variety, as part of efforts to expand its agricultural exports. State agriculture, agro-based industry and rural development committee chairman Datuk Zahari Sarip said the opportunity arose during a recent working visit to the island nation with Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. He said he was part of the Malaysian delegation where they met with New Zealand's Agriculture, Forestry, Trade and Investment Minister Todd McClay at the New Zealand Parliament in Wellington. 'McClay expressed strong interest in Malaysia's halal industry and welcomed closer strategic ties not only in halal certification, but also to position Malaysia as a gateway to the Asean market, which has over 600 million people.' He said McClay was receptive about Malaysian agricultural produce, particularly tropical fruits like pineapples, and had opened the door for investment opportunities for Malaysian companies in New Zealand. Zahari said Ahmad Zahid had suggested that Johor take the lead in seizing the opportunity. 'I will hold discussions with entrepreneurs and relevant agencies to explore this potential further,' he said. Zahari said Johor has 10,558ha of pineapple plantations, producing 347,490 metric tonnes annually, with an estimated value of RM920mil. 'Despite this, our production is still unable to meet the increasing demand from Europe, the Middle East and other international markets,' he said. Zahari also said that during the trip there, he met with a Simpang Renggam-born entrepreneur who has been running a business in New Zealand for about 18 years. 'During the meeting, we discussed the potential for snack products from Johor to get into the New Zealand market.' He said a series of follow-up meetings would be held with government agencies under the Johor Agricultural Export Market Strengthening Committee to explore the opportunity in greater detail. Zahari also highlighted Johor's achievements in the agro-based industry (IAT) sector with the state recording 1,604 registered IAT entrepreneurs last year. 'Johor-based IAT entrepreneurs accounted for 27% of the national total under the Agriculture Department. 'That same year, our IAT sector recorded nearly RM348.2mil in sales, which contributed to 29% of Malaysia's total sales,' he said.
Scoop
22-07-2025
- Business
- Scoop
UAE Deal Passes, Unlocking $500 Billion Market
Minister for Trade and Investment Minister of Agriculture The NZ-UAE Comprehensive Economic Partnership Agreement (CEPA) legislation has passed into law today, clearing the way for Kiwi exporters to tap into a $500 billion market that imports 90 per cent of its food, Agriculture, Trade and Investment Minister Todd McClay announced. 'The NZ-UAE CEPA delivers real benefits for New Zealand exporters, lowering costs, increasing access, and securing a stronger presence in the Middle East,' Mr McClay says. This is the highest-quality, and fastest, agreement negotiated by New Zealand that will immediately remove tariffs on 98.5 per cent of New Zealand's exports upon entry to force, rising to 99 per cent in three years. 'This high-quality trade agreement builds on New Zealand's strengths. UAE consumers are actively seeking safe, fresh products from around the world and are willing to pay more for them. This agreement gives New Zealand exporters an opportunity to lead in this competitive market,' Mr McClay says. Two-way trade between New Zealand and the UAE was worth $1.35 billion last year, and the CEPA will accelerate growth by reducing red tape, boosting services trade, and supporting investment links. 'Trade agreements are about opening doors and levelling the playing field for New Zealand exporters,' Mr McClay says. 'The CEPA is another step toward achieving the Government's goal of doubling the value of exports in 10 years. Growing our trade relationships helps boost the economy, lift incomes, and provide the public services Kiwis deserve.' The CEPA will enter into force following ratification procedures by both parties.
Business Times
20-07-2025
- Business
- Business Times
Indonesia's EU free trade push signals pivot from China-US dominance
[JAKARTA] Indonesia's bid to finalise its long-delayed free trade agreement with the European Union is being seen as a strategic shift in the nation's trade policy, as South-east Asia's largest economy looks to reduce its reliance on major partners such as China and the US. Known as the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), the deal has been under negotiation for more than a decade. But recent high-level engagements, including President Prabowo Subianto's visit to Brussels on Jul 13, signal that the agreement could finally be sealed by September this year. Analysts said that Indonesia, currently grappling with 19 per cent US import tariff and declining key commodity exports amid China's economic slowdown, could find much-needed relief if the free trade agreement with the EU is finalised. 'This is a new lifeline for Indonesia's industry,' said Andry Satrio Nugroho, head of the Center of Industry, Trade and Investment at the Institute for Development of Economics and Finance (Indef). Casting a wider net The agreement comes at a time when many countries are recalibrating their trade relationships due to rising geopolitical tensions and tariff barriers. Rory O'Donnell, partner for international agriculture, food and trade at Penta Group, noted that the global trade landscape has shifted significantly since the US re-introduced sweeping tariffs under Trump 2.0. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up He said that many Asean countries are currently engaged in trade discussions with the EU, reflecting a broader regional effort to diversify international trade partnerships. 'We have noticed increased trade activity across the world since the announcement of tariffs by (US) President (Donald) Trump in April,' he added. 'One of the big impacts of the tariffs announcements has been countries seeking to diversify their supply chains as some sort of protection against these tariffs.' The EU estimates that a finalised trade agreement with Indonesia could lift bilateral trade by around eight billion euros (S$12 billion), while Jakarta projects that the pact could drive a 50 per cent surge in exports to Europe. Coordinating Minister for Economic Affairs Airlangga Hartarto said that the agreement would grant Indonesia zero tariffs on nearly 80 per cent of its exports to the EU, along with the removal of various non-tariff barriers. Over the long term, the agreement could unlock up to US$60 billion in economic value and open access to new market opportunities across a combined population of 700 million in Europe and Indonesia. For Indonesia, the agreement represents more than just increased market access. Expanded access to the European market serves as a ray of hope for Indonesia's labour-intensive industries, such as footwear, which are facing a looming wave of lay-offs and the threat of 19 per cent tariffs from the US. Yoseph Billie Dosiwoda, executive director of the Indonesian Footwear Association, said that if the CEPA trade agreement is finalised, it could create millions of new jobs at home. Last year, Indonesia's footwear exports to the EU reached US$1.7 million, making it one of the country's top markets after US and China. Analysts said it reflects a broader strategic shift away from overdependence on the world's two dominant economies. For decades, Indonesia leaned heavily on China and the US as its primary export markets. But escalating tariffs, geopolitical friction and a slowing Chinese economy have exposed the vulnerability of such reliance. 'Indonesia is clearly looking for other markets, given the uncertainty in its relationship with the US,' said O'Donnell. 'This doesn't mean abandoning the US altogether, but it shows a desire to build more resilience.' Nugroho from Indef highlighted that China's economic slowdown has underscored the risks of overreliance on a single export market. The need to diversify has become especially pressing for Indonesia's downstream commodities. Exports such as ferro-nickel, once absorbed largely by China, are now seeking new destinations amid weakening demand. Official data shows that several European countries – including Italy, the Netherlands and Belgium – have already begun importing these products, albeit in smaller volumes. Indonesia's urgency to finalise the agreement is also shaped by growing regional competition. If successful, the deal would make Indonesia the third Asean country – after Singapore and Vietnam – to secure a free trade pact with the EU. 'Indonesia risks being left behind if it doesn't secure its own deal. This is a necessary move to remain competitive,' said Nugroho. Indonesian President Prabowo Subianto (centre) in Brussels; the Indonesian government hopes that the deal will boost value-added production in sectors such palm oil, nickel and copper – where the country still exports mostly raw or semi-processed goods despite strong upstream capacity. PHOTO: INDONESIA PRESIDENTIAL SECRETARIAT Attractive market European business leaders are welcoming the prospect of a deal. Chris Humphrey, executive director of the EU-Asean Business Council, told BT that EU companies have long regarded Indonesia as a strategic market within South-east Asia. 'Our members have been pressing for the completion of CEPA for many years,' he said. 'While we need to see the final details, there is growing optimism.' The CEPA is expected to generate mutual gains across a wide range of sectors. For Indonesia, key beneficiaries are likely to include palm oil, coffee, cocoa, footwear and textiles – industries where the country already maintains a significant global presence but faces various tariff and non-tariff barriers in European markets. O'Donnell noted other areas such as automotive, green technologies and critical raw materials that would also be important aspects of any deal. The Indonesian government hopes the deal will boost value-added production in sectors such palm oil, nickel and copper – where the country still exports mostly raw or semi-processed goods despite strong upstream capacity. On the other side, EU producers could see expanded access to the Indonesian market for high-demand goods such as dairy products, meat, and processed foods. Last year, total trade between Indonesia and the EU stood at US$30.1 billion (or 27.3 billion euros), with the EU exporting 9.7 billion euros worth of goods to Indonesia and importing 17.5 billion euros in return. Humphrey from the business council added that the deal could unlock greater investment opportunities, especially if Indonesia addresses long-standing concerns over its local content requirements and non-automatic import licensing – both of which are often seen by trading partners as de facto non-tariff barriers. 'If those issues are tackled, I would expect increased investor interest in Indonesia,' he said. 'It would also enhance Indonesia's role in global supply chains, especially around sustainability and ethical sourcing.' Indonesia, the world's largest palm oil producer, has repeatedly faced export hurdles in Europe due to ongoing concerns over deforestation. PHOTO: AFP A high bar to clear While optimism is growing, experts cautioned that ratification and implementation could take time. Even if the deal is signed this year, it must still be ratified by both the EU and Indonesian legislatures, a process that could stretch into 2027. Non-tariff barriers remain another major challenge. Nugroho said that EU sustainability rules set a high bar to clear for Indonesian exporters. Indonesia, the world's largest palm oil producer, has repeatedly faced export hurdles in Europe due to ongoing concerns over deforestation. Most recently, Indonesia faced the EU Deforestation Regulation, which required proof that goods were not produced on deforested land. However, its implementation was delayed after pushback in the European Parliament. 'Many of Indonesian products still fall short of EU certification requirements,' Nugroho said. 'This is where the government must step in, especially to support SMEs (small and medium-sized enterprises) and commodity producers in raising their standards.'
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Business Standard
19-07-2025
- Business
- Business Standard
India-EFTA trade pact to come into force from Oct 1: Piyush Goyal
The Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA), a four-member grouping, will come into effect from October 1 to generate $500 billion investment in the country, Union Minister for Commerce and Industry Piuysh Goyal said on Saturday. All the four EFTA countries, Switzerland, Iceland, Norway & Liechtenstein, have ratified the Free Trade Agreement (FTA) and launched their documents with the repository, which is in Norway. The FTA will come into effect from October 1, Goyal said, addressing the Trade and Investment seminar organised by Associated Chambers of Commerce and Industry ( Assocham) here. India signed the FTA with the four-member grouping in March 2024 with a binding commitment of $100 billion investment and one million direct jobs in the next 15 years in India. Goyal said that his estimate is that $100 billion FDI will catalyse at least a $500 billion investment in India. This could be into brownfield or greenfield projects and maybe in some cases, even mature assets. The FTA will provide a window to Indian exporters to access large European and global markets and also give a boost to Make in India and provide opportunities to a young and talented workforce. The pact comprises 14 chapters with main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights among others. The minister said with all the regulation, regulatory overburden in Europe, more and more of their businesses are either shutting down, or becoming totally niche products, or uncompetitive. For them to be able to capture world markets, they will need an alternate and more cost competitive production base. India with high quality talent and cost effectiveness offers opportunities, he added. EFTA is offering 92.2 per cent of its tariff lines which covers 99.6 per cent of India's exports. The EFTA's market access offer covers 100 per cent of non-agri products and tariff concessions on Processed Agricultural Products (PAP). India is offering 82.7 per cent of its tariff lines, which covers 95.3 per cent of EFTA exports, of which more than 80 per cent import is gold. The effective duty on gold remains untouched. Sensitivity related to production linked incentive (PLI) in sectors such as pharma, medical devices and processed food etc. have been taken into consideration while extending offers. Sectors such as dairy, soya, coal and sensitive agricultural products are kept in the exclusion list, according to a commerce ministry document.
Scoop
17-07-2025
- Business
- Scoop
Canada-NZ Dairy Dispute: A Win For Exporters
ExportNZ is pleased to see a years-long dairy dispute between Canada and New Zealand resolved, unlocking higher export value for Kiwi business. Executive Director Josh Tan says the outcome is a win for New Zealand dairy exporters, and a win for the rules-based trading system. "It's essential that our trade agreements function as they were agreed to - particularly in the current global trade context. Likewise, our trade partners should ensure they are playing by the rules. "Canada remains a valuable trade partner to New Zealand. In agreeing to meet its obligations under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada has guaranteed better market access for Kiwi exporters and we commend them for honouring this agreed outcome. "ExportNZ acknowledges the Minister for Trade and Investment and our New Zealand officials, for their persistent effort to reach the right outcome under the CPTPP agreement."
