Australia-Malaysia FTA set to go-ahead
The Age, Melbourne
Australia-Malaysia FTA set to go-ahead
6 April 2005
(AAP) Australia and Malaysia will give the green light to start talks for a free trade deal as Malaysian Prime Minister Abdullah Badawi makes his first official visit to Australia.
Thursday’s announcement will coincide with the first visit to Australia in 21 years by a Malaysian leader and as Prime Minister John Howard presses for closer engagement with Asia.
Mr Howard told the New Straits Times newspaper that Australia’s future success depended on it engaging across the globe and Asia was an important part of that strategy.
"My view is that Australia’s future success is fundamentally-based on its global engagement and there is no doubt that deeper and stronger ties with the countries of Asia are a vital part of that," he said.
Mr Howard received a boost this week from the successful visit of Indonesian president Susilo Bambang Yudhoyono, which was marked by the signing of a landmark agreement covering security, economic and social ties between Indonesia and Australia.
In a measure of the goodwill between the two nations, Dr Yudhoyono is urging other Asian nations to allow Australia to take part in an East Asia summit later this year.
Malaysia is hosting the summit and, for the moment, appears lukewarm to Australian involvement.
Mr Abdullah, who was to arrive in Australia on Wednesday night, told the ABC last weekend that Australia seemed more focused on parroting the views of the United States than on East Asia.
"We are inclined to believe that Australia is not really centring on Asia, or on East Asia, but has more concern with reflecting the views as expressed by the United States," he said.
In the newspaper interview, Mr Howard rejected suggestions that Australia’s strong alliance with the US could harm its relations with its Asian neighbours
"I don’t see the distinction between being allied to the United States on the one hand and working in partnership with Asian countries on the other," he said.
Mr Howard said he would like very much to strengthen Australia’s bilateral relationship with Malaysia.
"We have a strong and broad-based relationship that delivers results for both sides," he said.
Mr Howard wants to improve Australian investment in Malaysia, which he said had flagged in recent years.
"I would like to see that grow in both directions, and I think that with positive political signals we can encourage that," he said.
Economic ties look likely to grow after the pros and cons of a free trade deal were examined and found it a highly positive move.
Government sources told AAP the scoping study into the proposed free trade agreement, to be released on Thursday, found both countries will substantially benefit from more open trade.
The scoping study will be adopted, paving the way for the two to start formal FTA negotiations.
Two-way trade between the two countries is worth $10 billion, much of it focused on Australia’s education exports to Malaysia.
Australian Industry Group chief executive Heather Ridout said her organisation believed an FTA with Malaysia would bring benefits to the two nations.
"We very strongly believe in the merits of a Malaysian FTA," she told AAP.
Mr Abdullah was to begin his official three-day visit to Australia when he flew into Canberra.
Following a meeting between the two leaders, Mr Howard will host a parliamentary lunch in the Great Hall of Parliament House.
