Malaysian Trade Policy and the 2001 WTO Trade Policy Review

Prema-chandra Athukorala and Kunal Sen

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: The purpose of this paper is two-fold; to examine developments in trade and investment policy regimes in Malaysia following the on-set of the financial crisis, using the Trade Policy Review Malaysia 2001 of the WTO as a reference point; and to evaluate the Review in terms of the objectives of the WTO Trade Policy Review Mechanism as set out in the Marrakesh Agreement. It is found that, by and large Malaysia has managed to come out of the crisis without compromising on its long-standing commitment to maintaining a relatively open trade and investment policy regime by the regional standards. However, there are some disturbing post-crisis developments, which deserve scrutiny in a future Review. These include increase in the degree of dispersion of tariff rates because of high tariff peaks relating to a few product lines, increased reliance on non-automatic import licensing to regulate imports of a significant number of products which directly compete with domestic production by public sector enterprises, and unexplained delays in meeting commitments under the General Agreement on Trade in Services (GATS)

Pages: 31 pages
Date: 2002
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