M’sia-US FTA can conclude within given timeframe, says US official
Bernama, Malaysia
M’sia-US FTA Can Conclude Within Given Timeframe, Says US Official
6 December 2005
KUALA LUMPUR, Dec 6 (Bernama) — The possibility Malaysia signing a Free Trade Area (FTA) agreement with the United States before June 2007 is possible as both governments are seriously undertaking a study on the pact.
The Economic Affairs Counsellor at the U.S. Embassy here, Colin S Helmer, said the matter was still under consideration by both governments as they needed to identify issues relating to the agreement.
"We think it is possible to negotiate an FTA. Both sides have agreed that we need to start very soon," he said when asked whether the Malaysia-US FTA could be completed in June 2007 before the Trade Promotion Authority (TPA) is dissolved on July 1, 2007.
The TPA limits the U.S. Congress to decide for or against any trade agreement.
Previously, without a TPA, the U.S. has been forced to sit on the sidelines while other countries went ahead to secure free trade deals.
Under US law, the TPA, signed by President George Bush in 2002, was to implement trade agreements that would encourage trade and investment between US and its trading partners.
Helmer said when any countries negotiate an FTA, under the World Trade Organisation (WTO) requirements, the FTA should be a comprehensive agreement covering substantially all sectors of the economy.
"For us, our most competitive company is in services and we are also interested in the rules that could affect our company that might want to invest here and use Malaysia as production base, either for exports to US or to other markets," he added.
Besides that, he said an FTA with US could help Malaysia expand its exports to US to include other sectors such as services and agriculture.
Malaysia, which signed Malaysia-US Trade and Investment Framework Agreement (TIFA) on May 2004, has embarked on consultations with the US on a possible FTA.
Under TIFA, both governments had agreed to establish a Trade and Investment Council (TIC), which will meet in a year’s time to review the relationship and identify opportunities for trade and investment.
The council is expected to meet in Washington, next year for its fourth gathering, said Helmer.
Total bilateral trade between Malaysia and US in 2004 was RM147.9 billion compared with RM126.8 billion previously.
— BERNAMA
