Japan-Malaysia Economic Partnership Agreement (MJEPA)

The Japan-Malaysia Economic Partnership Agreement (MJEPA) entered into force in July 2006. It provides for the elimination of export supports and non-tariff measures, as well as for the gradual elimination of import duties- notably for iron, metals, ammonia, steel, aluminium, battery packs and cells, anodes, heat pumps, electric cars, and ICE cars.

The Agreement however allows the adoption of bilateral safeguard measures to prevent or remedy serious injuries to a domestic industry of one of the signatory countries resulting from an increase in imports brought by the reduction of a customs duty.

Specific rule of origins apply: to qualify for preferential tariff treatment, goods need to be wholly produced in the Parties' territories, or have undergone a significant production process there (eg. one that entails a change in tariff classification) or satisfy a minimum local value content of 40%.

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