In a bid to bolster economic ties and enhance bilateral trade relations, South Korea and Malaysia have announced the resumption of their stalled free trade agreement (FTA) talks, which have been inactive since 2019.
Trade Minister Cheong In-kyo, alongside his Malaysian counterpart, Tengku Zafrul Aziz, unveiled this decision during a meeting held in Kuala Lumpur, marking a significant step towards revitalizing trade discussions between the two nations.
Initially initiated in 2019, the bilateral FTA negotiations between South Korea and Malaysia had encountered obstacles after three rounds of talks. However, both countries have expressed eagerness to reignite these discussions and explore opportunities for deeper economic collaboration.
In addition to resuming talks, South Korea and Malaysia have outlined plans to broaden the scope of the envisioned FTA, aiming to include new areas such as services, investment, digital, and biotechnology sectors. This expansion reflects a shared commitment to modernize and diversify their trade partnership to align with evolving global economic trends.
Malaysia stands as South Korea's third-largest trade partner in Southeast Asia, underlining the significance of strengthening economic relations between the two nations. While South Korea already maintains an FTA with the Association of Southeast Asian Nations (ASEAN), pursuing individual FTAs with member states like Malaysia allows for deeper engagement and more tailored economic agreements.
The envisioned FTA is expected to bolster South Korea's position within the ASEAN bloc, providing enhanced opportunities for trade and investment across the region.
Furthermore, on the sidelines of the meeting, both countries have agreed to establish a new channel of dialogue between trade ministers, aimed at fostering bilateral economic cooperation. This initiative seeks to promote closer ties in supply chain management and facilitate collaboration in emerging industries, further solidifying the foundation of their economic partnership.
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