TPPA will drive Malaysia-Peru bilateral trade, says envoy

The bilateral trade between Malaysia and Peru is set to increase significantly following the signing of the Trans-Pacific Partnership Agreement (TPPA).

Peru Ambassador to Malaysia, Guido F. Loayza, said the TPPA was the first free trade agreement that tied Malaysia and Peru, who were members of the pact, together.

"Two-way trade between Peru and Malaysia is low due to trade barriers including import duties which are imposed by both countries on products coming in from either side.

"TPPA will ensure that these barriers are lifted and boost trade volume between Peru-Malaysia," he told Bernama here today.

Last year, the bilateral trade between Malaysia and Peru amounted to RM508 million, up 14.2 percent, from 2014.

The TPPA, which was signed by Malaysia and Peru along 10 others on Feb 4, 2016 in Auckland, New Zealand, will among others, lower trade barriers such as tariffs in order to promote freer trade among member nations.

The other 10 members are Australia, New Zealand, Chile, Mexico, the United States, Brunei, Singapore, Japan, Canada and Vietnam.

Loayza said now was the time for Malaysia and Peru to explore opportunities in each other's markets as they would benefit immensely once the trade pact was enforced.

He also said that this year marked the 30th anniversary of Malaysia-Peru diplomatic ties.

"After 30 years of solid relations, our ties are not going anywhere but forward and stronger too," he added.

Malaysia and Peru established diplomatic relations in 1986.