TWN Info Service on Free Trade Agreements

14 March 2008


US hopes to conclude FTA soon

With the Malaysian general elections over, recent reports indicate a renewed push to conclude the proposed US-Malaysia FTA. The last round of talks was held in Kuala Lumpur in January and the next round of negotiations may take place soon, perhaps in April or May.

Talks are likely to be intensive in the coming months as the US hopes to reach an agreement by this year.

The Minister of International Trade and Industry Rafidah Aziz has said that both parties have been proceeding with their discussions via emails and teleconferencing (http://news.xinhuanet.com/english/2008-02/18/content_7626586.htm), an indication of the non-transparent manner by which the process has been taking place so far. The public has hardly been consulted on the issues under discussion nor have any decisions taken been made public, despite the enormous implications of the FTA on the economy and society.



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Third World Network
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Item 1


http://thestar.com.my/news/story.asp?file=/2008/3/14/nation/20641666&sec=nation

Friday March 14, 2008
US seeks to conclude FTA
By Meera Vijayan
meera@thestar.com.my

JOHOR BARU: The United States hopes to conclude the final rounds of negotiations over the Free Trade Agreement (FTA) in the next eight months before the American elections.

However, the key would be to reduce barriers that restrict the volume of trade in the services sector and have greater transparency and clarity in the business system.

US Ambassador to Malaysia James Keith said that the coming months would be a window of opportunity to advance to the final rounds of the FTA with Malaysia.
“We have very serious issues that we need to address on a national level through our FTA negotiations and we will be pursuing that with vigour in the months ahead,” he said at a press conference after a luncheon address with the Malaysian Islamic Chamber of Commerce and the Johor Corp at Persada Johor.
Keith said that the United States would be focussing on negotiations related to financial services and government procurement.

“Those are the two areas where we need to see some progress from the American perspective,” he said.
Keith added that with bilateral trade between both countries approaching US$50bil (RM160bil) annually, the United States and Malaysia already enjoyed a vibrant relationship, but that there were ways to further refine bond.

“This is part of the world where Malaysia’s competitors are seeking us too and seeking us in a big way.

“We want to make sure that we can create the maximum opportunity for American companies to invest in and trade with Malaysia,” he said, adding that the Iskandar Development Region (IDR) would be among places which would benefit from US investment.
According to Keith: “The key to attracting them would be to create a system that is as transparent as possible so that we can convince them that Malaysia is a good place to do business.”

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Item 2

http://www.bernama.com.my/bernama/v3/news_business.php?id=320297

March 12, 2008 20:56 PM

US Officials Hope To Conclude US-Malaysia FTA By This Year

KUALA LUMPUR, March 12 (Bernama) -- US officials hope to conclude the US-Malaysia Free Trade Agreement (FTA) by this year, deputy economic counsellor of the US Embassy, John Finkbeiner, said Wednesday.

He said there were many issues that needed to be discussed, as the United States wanted a comprehensive FTA.

At a forum here on "Opportunities in the United States", Finkbeiner said a comprehensive US-Malaysia FTA will include goods, services, investment, telecommunications, financial services and agricultural products.

He said a comprehensive approach also included government procurement, intellectual property protection, harmonisation of customs and rules of origin, competition rules, environment and labour.
Benefits for Malaysia included strengthening of economic relationship, support for the country's national development goals, opportunities for more diversified exports, stimulating growth of services sector and access to US government procurement, Finkbeiner said.

The FTA will also benefit Malaysia in terms of providing more goods and services at lower prices to Malaysian consumers, according to him.

On the prospects of a slowdown in exports from the US this year, Finkbeiner said this would depend on how fast the country was able to recover from the current economic slowdown.

-- BERNAMA