Malaysia hopeful on U.S. free trade talks

Malaysia hopeful on U.S. free trade talks

Agence France-Presse, Kuala Lumpur

Malaysia expects to sign a pact with the United States soon to
kickstart possible free trade agreement (FTA) talks and will
pursue other bilateral FTAs to boost market access and spur
trade, Trade Minister Rafidah Aziz said on Monday.

Rafidah said she hoped to sign a trade and investment
facilitation agreement (TIFA), which will form the framework for
possible FTA talks with the United States during an upcoming
visit to Washington.

Officials said her trip is scheduled for next month.

Malaysia is also negotiating on a closer economic partnership
(CEP) with Japan, which will include an FTA expected to be
realized within 10 years, she was quoted as saying by Bernama
news agency during the ministry's annual dialogue with trade
associations.

Rafidah said FTAs would improve market access for the
countries involved and were a test of competitiveness for local
companies.

"An open economy such as Malaysia dictates that we must be
active participants in the process to protect our interest and
benefit from any arrangements," she said.

"While our choice of FTA partners and the preferential
treatments agreed to will be based upon both immediate and long-
term benefits to the country, as a whole, the industry must be
prepared for the competition that will be brought on by the
liberalization process."

Malaysia's share of global exports surged from 0.64 percent or
49.3 billion ringgit (US$13 billion) in 1980 to eight percent
valued at 398.90 billion ringgit last year, she added.

Malaysia was initially concerned that bilateral FTAs could
undermine the 10-member Association of Southeast Asian Nations
(ASEAN) Free Trade Area (AFTA), but officials said the country
did not want to be left out of the race as economic rivals went
ahead.

Singapore already has a slew of such accords with the U.S.,
Japan, Australia, New Zealand and the European Free Trade
Association while Thailand is to start negotiations with the U.S.
and is forging pacts with Australia, China, India, Japan and New
Zealand.

Trade between the U.S. and ASEAN totaled more than $120
billion last year, with the region buying $40-$50 billion worth
of goods and services. U.S. companies invested $88 billion in
ASEAN last year, more than the money they poured into China,
Mexico, Brazil and Japan.