Effective 21 February 2023, Chile became the newest member of the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP). The accession removes the 6 percent duty that Malaysia had applied to Chilean copper concentrate and lowers tariff rates on a range of other products exchanged between the two economies. The confirmation came from Malaysia’s Minister of International Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, on 12 January 2023, after Chile deposited its ratification instrument in December 2022.
With that final domestic step completed, the agreement is now in force for Chile. Chile already ranks as Malaysia’s third‑largest trading partner in Latin America, with bilateral trade reaching US$525 million in 2022.
Malaysia’s exports to Chile were dominated by palm oil and refined petroleum, while Chile supplied copper cathodes and fresh fruit. The CPTPP’s tariff reductions will directly benefit Malaysian electrical and food‑processing firms that depend on copper concentrate, and will also make Chilean copper, grapes and seafood cheaper for Malaysian importers. In a statement, Tengku Zafrul highlighted that Malaysian exporters of palm oil, rubber products and electrical‑electronic goods will now face lower duties in the Chilean market.
Conversely, Malaysian buyers will enjoy reduced tariffs on Chilean copper concentrate, fresh grapes and seafood – commodities that are essential to Malaysia’s manufacturing and food‑processing sectors. Chile’s decision to join the CPTPP was driven by a desire to lock in market‑opening advantages before broader regional initiatives could dilute the preferences it has secured.
Santiago’s officials estimate that the agreement could add 0.3 percentage points to the country’s annual GDP growth by expanding access for copper, fruit, wine and forestry products. The CPTPP now comprises eleven economies spanning the Pacific rim, together accounting for roughly 13 percent of global GDP. For Malaysian businesses, the practical task ahead is to review the new tariff schedules and adjust supply‑chain calculations accordingly.
The elimination of the 6 percent duty on copper concentrate, a low‑margin, heavy commodity, will immediately improve procurement costs for Malaysian manufacturers. Lower barriers for Chilean fresh grapes and seafood may increase competitive pressure on domestic producers, but they also provide Malaysian food processors with new sourcing options that could replace higher‑priced supplies from other regions.
The palm oil sector is watching the development closely. As one of the world’s largest producers, Malaysia stands to gain market share in Chile, a growing destination for edible oils, by offering products at more competitive rates than Indonesian exporters that are not CPTPP members. For Chilean exporters, the agreement safeguards preferential market access that could become increasingly valuable if future trade talks in the Americas alter the regional landscape.
By securing CPTPP membership now, Santiago ensures that its exporters retain the advantages already negotiated. Malaysia’s trade strategy has emphasized diversification beyond traditional partners such as China, the United States and Japan.
Latin America has been a secondary focus, but the CPTPP expansion into Chile provides a concrete incentive for Malaysian firms to re‑engage with the region. No additional promotional programs or trade missions were announced alongside the ratification news; the tariff reductions themselves serve as the primary catalyst. Companies that swiftly realign their supply chains to exploit the new rates are likely to capture the earliest savings.
