Expecting Expanding Textile Exports
from Malaysia to Japan under JMEPA

The Japan-Malaysia Economic Partnership Agreement (JMEPA) went into effect in July 2006.

Prominent among the products imported by Japan from Malaysia are textile products. Japanese import tariffs are already at low levels on most items. Japan's most favored nation (MFN) and generalized system of preferences (GSP) tariff rates on textile products are within the 0–14% range, with many items of apparel specifically being subject to rates of around 10%. As a result of the Japan-Malaysia EPA, almost all textile product items imported by Japan from Malaysia are not subject to tariffs. 

An 80% share of textile imports by Japan come from China, where GSP or MFN tariff rates are applied. Malaysia therefore has an advantage relative to China with respect to tariffs, as well. 

Japanese textile imports from Malaysia amounted to $142.61 million in 2006, which is only 0.5% of total textile imports. It appears, however, that the tariff benefits are being enjoyed since the Japan-Malaysia EPA went into effect. No marked increase has been apparent in apparel since the Japan-Malaysia EPA went into effect, but it is conceivable that the FTA will be utilized because of the large tariff advantage. 

Rules of origin for textile products are subject to manufacturing process criteria. In principle, it is a condition that two processes be carried out in a signatory country or in an ASEAN member country.

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