http://thestar.com.my/news/story.asp?file=/2011/5/6/nation/8625225&sec=nation

The Star, Friday May 6, 2011

Mustapa: FTA talks on track

MERGAWATI ZULFAKAR reporting from Indonesia

JAKARTA: The third round of the Malaysia-European Union FTA negotiations will begin next week in Brussels, as government negotiators work round the clock to meet the 18-month deadline.

International Trade and Industry Minister Datuk Mustapa Mohamed, who met EU Trade Commissioner Karel De Gucht on the sidelines of the Asean Leaders Summit week here, was confident the June 2012 deadline would be met.

“The first two rounds (in December last year and March) gave focus on understanding each other's policies. We explained to them our policies on government procurement, intellectual property, investment, services, wines and spirits among others,” he told a press conference yesterday.

Government matters: Foreign Ministry secretarygeneral Datuk Mohd Radzi Rahman (left) at the Asean Leaders Summit in Jakarta Thursday. — Bernama

By next week, negotiations will be more detailed as there had been specific proposals on trade and goods, including abolishing tariff on 90% of the products in seven years.

“There are also specific proposals on palm oil and intellectual property, but I cannot disclose the details.

“There has been progress in negotiations. The next round is in July in Kuala Lumpur and the timeline is still June next year,” he added.

During the launch of the FTA talks in Brussels, Prime Minister Datuk Seri Najib Tun Razak had expressed hope that negotiations would be completed within “18 months, no later than two years”.

Malaysia is the EU's second largest trading partner within Asean after Singapore, with bilateral trade in goods reaching 31.9 billion euros (RM141bil) in 2010.

Mustapa, who is also here to attend the first Asean-EU Business Summit, told De Gucht of Malaysia's commitment to see the conclusion of the protracted Doha Round negotiations by the year end.

“We share the view that there is still a huge gap among the major trading nations like India, China and Brazil,” he added.

Mustapa also met Indonesian corporate leaders who were looking for investments.

“They are looking overseas and we invited them to use Malaysia as a platform,” he added.

He said this idea was also in tandem with the objectives of the Asean Economic Community 2015.