OSLO, June 30 (Xinhua) -- Norway and other European Free Trade Association (EFTA) countries signed a new economic partnership agreement with Malaysia during the EFTA ministerial meeting held last week in Tromso, northern Norway.

This marked a significant step toward expanding trade and strengthening international cooperation amid growing global trade challenges, the Norwegian government said in a statement on Monday.

"Malaysia is a rapidly growing market, and this agreement will strengthen Norwegian businesses in competition with businesses from other countries looking to enter this market," said Norway's Minister of Trade and Industry Cecilie Myrseth.

The agreement, signed by representatives from Norway, Iceland, Liechtenstein, Switzerland, and Malaysia, is expected to substantially lower trade barriers.

According to the Norwegian government, 99 percent of Norwegian exports to Malaysia will become duty-free under the agreement, with most tariff reductions to be implemented within ten years.

"In challenging times, rules-based trade is especially important," Myrseth said, highlighting the value of maintaining predictable and fair trade frameworks.

Currently, trade between Norway and Malaysia remains modest, with bilateral trade in goods totaling approximately 7.1 billion Norwegian kroner (700 million U.S. dollars) in 2023.

The new agreement also paves the way for Norwegian companies to participate in Malaysia's public procurement market under equal conditions with local businesses.

The agreement also facilitates educational cooperation. Two MoUs were signed between Norwegian and Malaysian universities. These MoUs will promote joint research, academic exchanges, and collaboration on curriculum development.

The EFTA is the intergovernmental organization of Iceland, Liechtenstein, Norway and Switzerland. It was set up in 1960 for the promotion of free trade and economic integration between its members.