TWN Info Service on Free Trade Agreements

21 May 2008

Malaysia-US FTA Talks Expected to Resume in July

Malaysia and the US are expected to resume their FTA negotiations in July. It was reported that the two contentious issues - government procurement and competition policy – will not be discussed in this round.

Despite the deadlock in a number of issues, the US hope to reach a deal by this year ahead of the US presidential elections in November.

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The Star, Tuesday May 20, 2008

(http://thestar.com.my/news/story.asp?file=/2008/5/20/nation/21302342&sec=nation)

US wants to continue talks on Free Trade Agreement

SHARM EL-SHEIKH (Egypt): The United States is willing to continue its trade negotiations with Malaysia although no time frame has been decided, Deputy Prime Minister Datuk Seri Najib Tun Razak said.

He said Malaysia also wanted to proceed with the Free Trade Agreement (FTA) negotiations with the US government.

However, he stressed that the talks should not be tied to a time frame or issues related to Malaysian interests and policies.

“The US government’s stand is that they are still interested in continuing the negotiations with Malaysia in order to achieve a common understanding on the FTA.

“If we are able to reach a successful conclusion, it will benefit both sides, as the United States is the largest export market for Malaysia,” he told Malaysian reporters here while attending the World Economic Forum on the Middle East.

Najib had earlier held discussions with US Trade Representative Susan Schwab, who told him that her government was willing to continue the talks before the end of President George W. Bush’s term this year.

“The Malaysian Government, in principle, wants to continue the talks but they should not be tied to a time frame or Malaysian internal policies and interests.

“That’s why we didn’t want to state a time frame,” he added.

Both countries are expected to resume their FTA negotiations in July, minus the unsettling issues of government procurement and competition policy.

It was reported that the US government had previously insisted on the inclusion of the two issues in the talks, which Malaysia strongly opposed.

International Trade and Industry Minister Tan Sri Muhyiddin Yassin had said in New York on Friday that both issues were among the outstanding matters which had stalled progress of the talks to date.

The negotiations commenced in March 2006 and stalled during the seventh round of talks in January.