TWN Info Service on Free Trade Agreements

16 February 2007


Cabinet to decide on contentious issues, FTA talks to continue

According to news reports, the Malaysian Cabinet is to decide on some of the contentious issues in the Malaysia-US FTA negotiations, following submissions from the relevant Ministries.

Malaysia's trade minister has indicated that talks with the United States will continue and both parties are trying to set a date for the next round of negotiations before a crucial March deadline.


Best wishes,

Third World Network
2-1, Jalan 31/70A
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

------------------------------------------------------------------------
Item 1

February 15, 2007

Cabinet To Decide On Some Of M'sia-US FTA Issues

KUALA LUMPUR, Feb 15 (Bernama) -- The latest position of the Malaysia-United States free trade arrangement (FTA) negotiations will be presented to the Cabinet, said International Trade and Industry Minister Datuk Seri Rafidah Aziz Thursday.

She said the Cabinet ministers were briefed on the negotiations yesterday but there were certain things that would have to be decided later by the Cabinet.

"There are some things which we didn't decide, which will be decided at the Cabinet level when I present the papers. The cabinet will relook and decide," she told a press conference after chairing the Wanita Umno Exco meeting, here today.

Rafidah said Deputy Prime Minister Datuk Seri Najib Tun Razak, who chaired the meeting yesterday, had indicated that Malaysia wanted to do its best to work within the timeframe provided.

The US is keen to conclude talks by March, ahead of the expiry of President George Bush's Trade Promotion Authority in July this year.

But several issues have yet to be sorted out.

"For as long as the basic issues that are non-negotiable -- Bumiputera policy, sovereign right of government to make policy -- as long as things like that are not compromised, the rest can be negotiated," she said.

At the briefing yesterday, there were 58 outstanding issues, of which 16 issues involved the Ministry of Domestic and Consumer Affairs, while others involved the Ministry of Agriculture and Agro-based Industries, the Human Resources Ministry and several others.

"It is not MITI's position alone, it is the position of every ministry and agency involved that constitutes Malaysia's position.

"So..it is very important that every ministry and agency concerned, understand the full implications of the position they put forward for the Cabinet and for the government to consider," Rafidah said.

Asked whether Malaysia wanted the FTA more than the US, she said:

"It's like getting married, do you want to get married more than he does?"

After a very detailed and technical briefing yesterday, Rafidah said she received a call from US Trade Representative Susan C. Schwab from Washington who had indicated that the US was also committed to resuming talks in order to complete the negotiations.

She said Susan would direct her chief negotiator, Barbara Weisel to discuss with MITI's secretary-general Datuk Abdul Rahman Mamat as to when to continue their negotiations.

The talks may not be the whole full-scale thing but more of discussions on issues that require negotiating. Others could be resolved via phone, she said.

A news report today said that several ministries which were involved in the FTA talks have been given a week to submit their views to the Cabinet for further action.

-- BERNAMA

------------------------------------
Item 2

FTA talks: NEP dropped from negotiations
Feb 15, 2007

Malaysia's trade minister said today free trade talks with the United States will continue and both parties are trying to set a date for the next round of negotiations before a crucial deadline.

Trade Minister Rafidah Aziz said she and her counterpart, US Trade Representative Susan Schwab, had discussed when to hold the next meeting after earlier fears that negotiations may have deadlocked.

"Things are moving forward ... I have asked Susan to direct her chief negotiator to now discuss with my chief negotiator when we can continue," Rafidah told reporters.

Washington is racing to conclude the FTA by the end of March to give the US Congress the requisite time of three months to consider the deal.

The FTA must be passed before July 1, when US President George W. Bush loses his Trade Promotion Authority (TPA) which allows deals to be fast-tracked. Washington fears a Democrat-controlled congress will not renew the authority.

"Time is of the essence. It's unfortunate they have the TPA," Rafidah said, acknowledging the US deadline.

She added the government wanted to "try our very best to work within the timeframe provided to us."

Sensitive or 'no go' issues

The minister said Malaysia would attempt to resolve the 58 "outstanding issues" that arose and bogged down the fifth round of talks held two weeks ago.

Rafidah said she advised government ministers on Wednesday on the status of the FTA negotiations and had requested that the relevant ministries review the issues.

She said sensitive or "no-go" issues, such as Malaysia's positive discrimination policies for its majority ethnic Malays, would be excluded from the next round of negotiations.

"The attitude of our government is that as long as the basic issues that are non-negotiable - such as the native Malay policies - are not compromised, the rest can be negotiated," she said.

Rafidah added both countries had agreed that the next meeting "may not be the full scale negotiations" and "could be just sectorial".

She did not elaborate on the nature of the 58 contentious issues except to say they involved the ministries of trade, agriculture, labour, science and technology, finance and environment.

- AFP