The Malaysia-Japan free trade agreement (FTA) is expected to take effect Jan. 1, following formal approval by parliaments in both countries, allowing Japanese auto makers a free-flow of vehicles into Malaysia by 2015. Under the agreement, Malaysia immediately will end tariffs on complete-knocked-down (CKD) vehicles and components produced by Japanese car makers for assembly in Malaysia. Tariffs on auto parts imported from Japan and not used in CKD vehicles will be reduced to 5% or less ...

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