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TWN Info Service on Free
Trade Agreements
14 February 2007
Ministers to Submit Views on Contentious Issues Soon
Malaysian Cabinet ministers are to provide their feedback on the 58
contentious issues that have plagued the US-Malaysia FTA talks within
the next week.
They were given a special briefing on the FTA by Minister of International
Trade and Industry Rafidah Aziz yesterday and were asked to submit their
views especially on those issues affecting their respective ministries.
Their input is crucial in deciding on how Malaysia
will proceed with the FTA talks.
The apparent rush is due to meet the March deadline imposed by the Americans
who have to present the agreement to the US Congress 90 days before
the current Trade Promotion Authority granted to them to negotiate FTAs,
expires in June.
Best wishes,
Third World Network
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Desa Sri Hartamas
50480 Kuala Lumpur
Tel: +603-2300 2585
Fax: +603-2300 2595
email: twnkl@po.jaring.my
websites: www.twnside.org.sg and www.ftamalaysia.org
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Questions over FTA with the US
By Rupa Damodaran and Deborah Loh
The New Straits Times, February 15 2007
(http://www.btimes.com.my/Current_News/BT/Thursday/Nation/20070215013428/Article/:)
WILL the bilateral free trade agreement between Malaysia
and the US
be signed?
After five rounds of inconclusive negotiations, and with the March deadline
imposed by the US
looming large, nothing seems certain.
Yesterday, Cabinet ministers were asked to give their feedback on the
58 contentious issues which are holding back the agreement.
Among the contentious issues are questions about intellectual property
rights and certain policies of the Malaysian government regarding tenders.
The ministers, who were given a special briefing on the FTA talks by
International Trade and Industry Minister Datuk Seri Rafidah Aziz after
the weekly Cabinet meeting, were asked to submit their views in about
a week.
Their input is crucial in deciding whether Malaysia will proceed with the FTA
talks which commenced in June last year.
Miti, the co-ordinator of the negotiations, has taken the lead in most
of the issues discussed, ranging from market access, trade remedies,
rules of origin, investment, services and capacity-building.
Although she denied that the talks had deadlocked,
Rafidah did not give any indication of another round of talks. However,
she said informal talks were still in progress between officials of
both governments.
Plantation Industries and Commodities Minister Datuk Peter Chin said
yesterday Rafidah gave a two-hour briefing and ministers were told to
submit their views, possibly next week.
“The briefing allowed us to see the larger aspects of the FTA arguments
on both sides. There are outstanding issues involving several ministries,
and we have to give our views for the Cabinet to decide what to do next.
“We have to act soon as the talks are to be wrapped up in next month,”
he said.
The March deadline was imposed by the Americans who have to present
it to the US Congress 90 days before the current Trade Promotion Authority
granted to them to negotiate FTAs, expires in June.
Rafidah stressed last week that Malaysia was not
about to give in to anyone’s demands, saying “we have our own positions
on sovereign rights and we have strong feelings about certain policies
which are sacrosanct as far as the people are concerned”.
Several non-government organisations and political parties have held
protests outside the US
embassy in Kuala Lumpur
during the talks to express their fear that Malaysians, especially those
in the low-income group working in factories and farms, might lose out
if the FTA was signed.
Ministers contacted after the briefing kept mum about the sticky points.
Human Resources Minister
Datuk Seri Dr Fong Chan Onn would only say
that he was confident of resolving issues involving his ministry.
Through the FTA, both countries are seeking an agreement that will further
increase trade and investment in both directions, create higher paying
jobs and enhance competitiveness.
The private sector, especially sectors such as the textiles and garments
industry, is pushing for a FTA which would cut down on Customs duties
for its products.
This would mean they would be able to compete with “low-cost” countries
such as Vietnam,
Indonesia and China
and enhance Malaysia’s
competitiveness.
The US market, with
a strong purchasing power, is one of the better markets for Malaysia and the FTA creates a preferential
trading position for all Malaysian firms in the US$13 trillion (RM45.5
trillion) American economy.
Malaysian exports to the US
grew by US$24 billion (RM84 billion) to US$36 billion (RM126 billion)
between 2002 and 2006.’
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