ABSTRACT:
The Malaysian Palm Oil (MPO) industry is important in the global oils and fats market, significantly contributing to economic value in Africa. As the African trade bloc represents the second largest export market for this industry, such implementation of the African Continental Free Trade Agreement (AfCFTA), could have profound influence on Malaysia’s market position. This study explores the potential effects of AfCFTA on the MPO industry within African trade blocs using a mixed-method approach. Quantitative methods in this study include the use of paired sample t-tests to analyse differences in the MPO industry’s metrics before and after the implementation of the agreement, assessing how AfCFTA influence the trade dynamics for MPO products. Qualitative approaches are utilised to investigate shifts in market access, tariff regimes, and non-tariff measures (NTMs), providing a comprehensive view of the trade environment. The results revealed that AfCFTA and associated trade liberalisation have not significantly enhanced the trade performance of Malaysian Palm Products (MPPs) exports. These findings suggest that external factors may play a critical role in shaping export dynamics, indicating the need for further research to fully understand AfCFTA’s effectiveness within the palm oil sector. The findings offer deeper understanding of the complex interactions between trade agreements and the MPO industry, delivering actionable recommendations that could enhance trade relations between Malaysia and African countries.
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