Although free trade negotiations between the EU and Malaysia have been frozen, a Sustainable Impact Assessment (AIS) has been launched to support free trade negotiations between the two partners. The ASA will assess the potential impact of the trade and trade provisions of the proposed free trade agreement on the economic, social, human rights and environmental aspects in each trading partner and in other countries concerned. A free trade agreement is an international agreement between two or more countries to reduce or remove trade barriers and achieve closer economic integration. These bilateral trade and investment agreements were designed as building blocks for a future agreement between the regions. Malaysia has already signed and implemented seven bilateral free trade agreements with Japan, Pakistan, India, New Zealand, Chile, Australia and Turkey. At the ASEAN level, Malaysia has 6 regional free trade agreements with ASEAN (AFTA), China, Korea, Japan, Australia, New Zealand and India. Malaysia signed 16 free trade agreements and implemented 14 free trade agreements (7 bilateral free trade agreements and 7 regional free trade agreements). In addition, increased internationalization through trade and participation in global value chains (CIS) enables Malaysian SMEs to achieve economies of scale, increase market share and increase productivity. In this regard, Malaysia has engaged in various free trade agreements (FTAs) to improve market access for Malaysian goods and services. In total, in 2019, 66.7% of Malaysia`s total trade, or RM 1.22 trillion, was spent on trade with countries covered by regional and bilateral free trade agreements. Exports to free trade countries amounted to $672.1 billion.RM while imports amounted to $551.5 billion.RM. As a small-market trade nation, it is essential for Malaysia to continue to establish an open trade and investment system to stimulate economic growth, create high-skilled jobs and promote technological development and innovation. In the first nine months of 2020, trade with ESTV partners amounted to 66.5% and 860.6 billion .RM, respectively.
Exports amounted to $483.29 billion.RM while imports amounted to $377.31 billion.RM. Malaysian SMEs are therefore encouraged to take advantage of Zuleinen`s free trade agreements and develop a good understanding of free trade agreements and trade requirements in order to take advantage of the benefits of free trade agreements to penetrate global markets. To date, Malaysia has signed 14 free trade agreements: ensuring better access for EU exporters to the dynamic ASEAN market is an EU priority. Negotiations for a trade and investment agreement between the region and ASEAN began in 2007 and were interrupted by mutual agreement in 2009 to relax a bilateral negotiating format. . The ASEAN region is a dynamic market with approximately 640 million consumers and is the eighth largest economy in the world.