TWN Info Service on Free Trade Agreements

26 May 2009

Malaysia-US to Restart FTA Talks Soon?

Negotiations on the FTA between Malaysia and three other countries namely the US, Australia and New Zealand are likely to begin as early as the middle of June, according to a report, quoting International Trade and Industry Minister Mustapa Mohamad.

US Ambassador to Malaysia James R.Keith said the Obama administration was in the process of reviewing aspects of the US-Malaysia agreement and would speed up the new round of talks with Malaysia. However, he also added that talks would have to take a backseat first until the review is completed as soon as the trade and financial trips by the president in the Asian region are concluded and following the main Doha Development Round and regional talks scheduled this year.

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Bernama | May 24, 2009

Malaysia FTA Renegotiations Start In June

KOTA BAHARU, May 24 (Bernama) — Renegotiations on the Free Trade Agreement (FTA) between Malaysia and three other countries namely the United States (US), Australia and New Zealand will begin in the middle of June.

International Trade and Industry Minister Datuk Mustapa Mohamad said his ministry would hold separate meetings with the three countries to discuss the direction and actual picture to ensure that the process to realise the FTA between the three countries and Malaysia was achieved.

"I will look again at Malaysia’s position and stand regarding the FTA and will inform the Cabinet on the matter for discussion.

"I’m also waiting for the mandate from Prime Minister Datuk Seri Najib Tun Razak on the matter," he told reporters after a meeting with agencies under his ministry, here today.

He was commenting on the statement by the United States Ambassador to Malaysia, James R.Keith, on Thursday that Malaysia was now on the right track to proceed with a new round of negotiations on the FTA with the US following the implementation of the liberalisation policy announced by the Malaysian government recently.

Keith said that since the negotiations last year, the Barack Obama administration had been reviewing all aspects of the agreement and would speed up the new round of negotiations with Malaysia.

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Bernama | May 21, 2009

New Round Of Malaysia-US FTA Talks May Resume Sooner Than Expected

KOTA BAHARU, May 21 (Bernama) — Malaysia is on the right path for a new round of Free Trade Agreement talks with the United States, following the liberal policies announced by the Malaysian Government recently.

The US Ambassador to Malaysia James R.Keith said the present Barrack Obama administration was in the process of reviewing the aspects of the agreement and would speed up the new round of talks with Malaysia.

US President Obama’s policy to strike a win-win situation for both countries is very clear and this concerns two financial and business aspects of the agreement namely the financial and government procurement sectors, he said.

Malaysia stands to gain from the US$250 billion worth of government contracts offered by the US if the FTA materialises.

The three-year negotiations between the two countries however would have to take a backseat first until the review is completed as soon as the trade and financial trips by the president in the Asian region are concluded and following the main Doha Development Round and regional talks scheduled this year, Keith told local bureau chiefs during a roundtable session here as part of his visit to the East coast states since May 19.

"I believe that although we are faced with the global financial slump, things are going on as usual and before we know it, the talks may resume sooner than expected," he said.

He said Obama was on a global trip to extend his friendly gestures to all continents and with this, Malaysia’s bilateral relations with the US in the areas of military, law enforcement, commerce and foreign policies would be enhanced. The Doha Round is the current trade-negotiation round of the World Trade Organization (WTO) which commenced in November 2001.

Its objective is to lower trade barriers around the world, and allow countries to increase trade globally.

As of 2008, talks have stalled over a divide on major issues, such as agriculture, industrial tariffs and non-tariff barriers services, and trade remedies.

The most significant differences are between developed nations led by the European Union (EU), the United States (USA) and Japan and the major developing countries led and represented mainly by India, Brazil, China and South Africa.

There is also considerable contention against and between the EU and the U.S. over their maintenance of agricultural subsidies-seen to operate effectively as trade barriers.

The most recent round of negotiations on July 23, last year, broke down after failing to reach a compromise on agricultural import rules.

After the break down, major negotiations were not expected to resume until 2009.

Nevertheless, intense negotiations, mostly between US, China and India, were held in the end of 2008 in order to agree on negotiation modalities.

However, these negotiations did not result in any progress.