U.S., Malaysia set pace for free trade pact<\/p>\n
Agence France-Presse
\nWashington<\/p>\n
The United States and Malaysia signed an agreement on Monday
\nsetting up a special forum to address trade issues, Washington's
\nfifth such pact with export-driven Southeast Asian nations.<\/p>\n
U.S. Trade Representative Robert Zoellick and Malaysia's
\nMinister of International Trade and Industry Rafidah Aziz signed
\nthe Trade and Investment Framework Agreement (TIFA), which could
\nlead to a bilateral free trade pact.<\/p>\n
The TIFA provides for the creation of a joint council to
\nexpand and liberalize trade and investment, including tackling
\ntrade barriers and other issues seen hampering free trade.<\/p>\n
Aside from Malaysia, the United States has TIFAs with four
\nother members of the Association of Southeast Asian Nations
\n(ASEAN) -- Indonesia, the Philippines, Thailand and Brunei.<\/p>\n
The other ASEAN members are Cambodia, Laos, Myanmar, Singapore
\nand Vietnam.<\/p>\n
Washington has already signed a free trade agreement with
\nSingapore and is discussing one with Thailand.<\/p>\n
\"We look forward to working closely with Malaysia to further
\nstrengthen our economic relationship bilaterally and within
\nASEAN,\" Zoellick said. \"This TIFA provides a useful forum to
\ndiscuss ways to address bilateral trade issues.\"<\/p>\n
He said the United States wanted to enhance trade with
\nresource-rich Malaysia, which was seeking to diversify its
\nrapidly-growing economy.<\/p>\n
Malaysia is the 10th largest trading partner of the United
\nStates.<\/p>\n
On the other hand, the United States is the largest single
\nmarket for Malaysia.<\/p>\n
Their political ties however are not as cosy as in the
\nbusiness and trade fields. Predominantly-Muslim Malaysia has been
\na sharp critic of the U.S.-led invasion of Iraq and has attacked
\nWashington for its policy on the Israel-Palestine conflict.<\/p>\n
Among areas that the two countries would look into under the
\ntrade agreement are intellectual property, information and
\ncommunications technology, biotechnology policy, tourism and
\nboosting small- and medium-sized enterprises.<\/p>\n
\"TIFAs can help focus attention on trade issues which often
\nincludes barriers that the U.S. faces, and, therefore, can help
\nexpand U.S. access,\" a statement from Zoellick's office said.<\/p>\n
Rafidah said the agreement \"could be a precursor\" to a
\nbilateral free trade agreement.<\/p>\n
\"I am sure as we go on, we find that it will be advisable,
\nperhaps for both sides to have studies on our own to see what
\nareas we can make concessions to each other that can become the
\nsubstance for a free trade area,\" she said.<\/p>\n
The TIFA is a result of U.S. President George W. Bush's
\n\"Enterprise for ASEAN Initiative\" launched in October last year
\nto woo ASEAN states to sign free trade agreements with the United
\nStates.<\/p>\n
Rafidah said the private sectors of both countries would
\nbenefit from the agreement as there would now be a formal
\nmechanism where the governments could discuss trade issues at the
\nministerial level.<\/p>\n
She said the joint council could devise plans for the
\nprotection of intellectual property rights.<\/p>\n
Malaysia was initially reluctant to forge bilateral FTAs,
\nfearing it could undermine the 10-member ASEAN Free Trade Area
\n(AFTA) but the country did not want to be left out as other ASEAN
\nmember states signed such agreements with key trading partners.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-malaysia-set-pace-for-free-trade-pact-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}