Explore Latin American Market, Matrade Tells Enterprises

By Niam Seet Wei KUALA LUMPUR, April 27 (Bernama) -- The Malaysia External Trade Development Corporation (MATRADE) wants local enterprises to spread their wings and tap the vast unexplored markets of Mexico, Peru and Chile. Market Access And International Partnership Division Senior Director Aureen Jean Nonis said with a combined population of 166.3 million and the soon-to-be enforced Trans-Pacific Partnership Agreement (TPPA), the three countries can become a gold mine for Malaysian investors. "Last year, the bilateral trade between Malaysia and Chile surged 36 per cent, year-on-year, to RM1.6 billion while with Mexico it increased 17.5 per cent to RM7.7 billion and with Peru it was valued at RM508 million, up 14.2 per cent, from 2014. (US$1=RM3.91) "The numbers are relatively small if compared with our trade with other regions and there is ample room for Malaysian exporters to tap these markets," she told Bernama. Nonis cited surgical gloves, home appliances, furniture and automotive parts had great potential for export to these countries. "The enforcement of TPPA, which is expected by 2018, will make Malaysian products more price competitive compared with products from non-TPP countries," she said. Malaysia, Mexico, Peru and Chile are among the 12 nations which signed the TPPA. Other countries are Australia, New Zealand, the United States, Brunei, Singapore, Japan, Canada and Vietnam. The trade pact which was signed on Feb 4, 2016 in Auckland, New Zealand, will, among others, lower trade barriers such as tarrifs. Nonis said currently, Mexico imposed a 20 per cent import duty on cocoa powder from Malaysia while Peru slapped a nine per cent import duty on items such as surgical gloves. She also said that in 2012, Malaysia and Chile signed a free trade agreement to further boost bilateral trade between the two countries. International Trade and Industry Minister Mustapa Mohamed will lead a MATRADE trade and investment mission to Peru, Mexico and Chile from May 14 to May 27, 2016. Last year, Malaysia's total trade with Latin American countries amounted to RM30.6 billion against RM40.6 billion in 2014. -- BERNAMA