CPTPP Tariff Extended to Malaysia

Summary#

The Order Amending the Schedule to the Customs Tariff (Extension of a CPTPP Tariff to Malaysia) adds Malaysia to the list of countries eligible for the tariff preferences in the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP). The change took effect on November 29, 2022.

What it does#

• Updates the Customs Tariff schedule so goods that qualify under CPTPP rules can get CPTPP tariff rates when imported from Malaysia.
• Requires the Canada Border Services Agency (CBSA) to update its systems and advise importers about the change.
• Brings Canada into line with its CPTPP commitment now that Malaysia has completed ratification.

Who's affected#

• Canadian businesses that import goods from Malaysia, if those goods meet the CPTPP origin and documentation rules.
• Exporters in Malaysia who sell qualifying goods to Canada.
• Consumers and downstream businesses in Canada who may see lower costs on some imported products.
• The federal government (in the form of reduced customs duties) — estimates for full CPTPP implementation with all members include foregone duties of about $652 million annually (based on recent trade patterns).

Why it matters#

• Eligible imports from Malaysia can now pay lower or zero tariffs under the CPTPP, which can lower costs for Canadian businesses and possibly consumers.
• The change completes a technical step needed after Malaysia ratified the CPTPP so trade benefits actually apply.
• Broader CPTPP effects projected by government analysis include long‑term gains of about $4.2 billion by 2040, and eventual duty‑free treatment on 99% of tariff lines covering 98.1% of average annual exports to CPTPP markets (about $32 billion).
• Without this order, importers would not have been able to claim CPTPP rates for Malaysian goods after Malaysia joined, which would have conflicted with Canada’s CPTPP commitments.