Australia and Malaysia agree to consider free-trade agreement
Australia and Malaysia agree to consider free-trade agreement
Bloomberg, Canberra
Australia and Malaysia agreed to consider a free-trade agreement,
Australian Prime Minister John Howard said during a visit by
Malaysian Prime Minister Abdullah Ahmad Badawi.
Abdullah, the first Malaysian leader to visit Australia in 21
years, is aiming to build political ties and boost trade worth
US$7.4 billion a year. Relations between the two countries were
strained during the 22-year rule of Mahathir Mohamad, Abdullah's
predecessor.
"The agreement will build on the already substantial economic
relationship between the two countries," Howard told reporters in
Canberra.
Trade in goods and services between Malaysia and Australia
rose 21 percent in 2004, making Malaysia Australia's ninth-
biggest trading partner.
Malaysia sells crude oil, electronic components and computers
to Australia and taps Australia for goods including sugar, wheat
and dairy products.
Australia has free-trade agreements with Thailand, Singapore
and the U.S. The fifth-biggest economy in the Asia-Pacific region
is also mulling trade agreements with China, Japan and Indonesia.
Indonesia's President Susilo Bambang Yudhoyono visited
Australia earlier this week and signed a security and trade
accord. It was the first visit by a head of state from Southeast
Asia's biggest economy since 2001.
Howard and Abdullah committed to "build on its co- operation"
fighting terrorism and money laundering.
"I'm particularly happy we have decided to commence
negotiations on a free-trade agreement," Abdullah told reporters
in Canberra.
"I believe both of us know for a fact our bilateral relations
have been very strong in recent years, despite some problems here
and there."
Abdullah told the Australian Broadcasting Corp. this month
that Australia wasn't "centering" on Asian relationships and that
its foreign policy had "more concern" with the U.S.
Abdullah declined to say if Australia would be among the
nations attending a summit this year to be held by the
Association of Southeast Asian Nations.
Australia wants to join ASEAN and attended its summit in
November as an observer. Malaysia is one of the 10 members of
ASEAN, which has a population of 500 million and combined gross
domestic product of $737 billion.
The 10 members are Indonesia, Thailand, Malaysia, Singapore,
Brunei, the Philippines, Cambodia, Laos, Myanmar and Vietnam.
"We haven't decided the members yet and there are many things
that need to be discussed," Abdullah said.
Malaysian leader Mahathir made only one official visit to
Australia during his 22 years in power, a trip that took place in
1984. In 1993, then Australian Prime Minister Paul Keating
labeled Mahathir "recalcitrant" for failing to attend the first
meeting of the now 21-member Asia Pacific Economic Cooperation
grouping in Seattle.
More than a decade later, Mahathir reiterated that, in his
view, Australia had "nothing" to offer Asia.