CPTPP trade deal should eventually lead to end of tariffs on scrap plastic to Malaysia

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The UK has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and this should eventually mean that tariffs on imports of scrap plastics by Malaysia should end.

Malaysia joined the CPTPP in November 2022 as one of its founding members, and as part of that produced a schedule on tariff reductions.

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With the UK signing up to the CPTPP, it should mean that it will be subject to the same tariffs as other members.

Currently, Malaysia applies a 30% tariff on the 391510100 tariff code and 25% on the 391510900 tariff code for polymers of ethylene for example.

Over the next 11 years, these tariffs should progressively fall to 0%.

However, the UK Government has a commitment to ban exports of recyclable plastic to non-OECD countries. As Malaysia is not currently an OECD member, but has previously expressed interest to join, this proposed legislation could prevent Malaysian importers from benefitting from these tariff reductions.

As paper and cardboard imports into Malaysia currently are not subject to tariffs, there will be no impact on this sector from joining the trade agreement.

Below is the schedule of tariff reductions for Malaysian plastic imports from CPTPP members (click here if image does not display):