Cabinet gives nod for Malaysia-US FTA discussions, says Rafidah
Bernama, Malaysia
Cabinet Gives Nod For Msia-US FTA Discussions, Says Rafidah
17 January 2006
KUALA LUMPUR, Jan 17 (Bernama) — The Cabinet has agreed in principle for Malaysia and the US to begin discussions towards forging a free trade agreement (FTA) as and when both sides are ready.
"Our officials will start talking and identifying areas to be negotiated for the FTA," International Trade and Industry Minister, Datuk Seri Rafidah Aziz told reporters after a new year’s gathering with the private sector at her office, here Tuesday.
She said that currently there was no timeframe to start the negotiations as officials from both sides were preparing the parameters of the FTA.
"What is important, once they thrashed out the scope and coverage as well as timeframe in principle, they (officials) will come back to me.. and then once we have agreed, I will be going back to the Cabinet and say this is what it’s all about and then we start (negotiate)," she said.
US Embassy Economic Affairs Counsellor Colin S Helmer was recently reported as saying that both governments were seriously undertaking a study on the pact
He had said it was possible to conclude the FTA negotiation in June, 2007, before the Trade Promotion Authority (TPA) dissolved on July 1, 2007.
The TPA limits the US Congress to decide for or against any trade agreement.
Under the US law, the TPA, signed by President George Bush in 2002, was to implement trade agreements that would encourage trade and investment between the US and its trading partner.
Previously, without a TPA, the US has been forced to sit on the sidelines while other countries went ahead to secure free trade deals.
On another note, Rafidah said that there would be an announcement of a new FTA on Thursday, but declined to reveal the country concerned.
"On Thursday, there will be some new release about a new FTA, so you have to wait for that. That’s a scoop story, I’m not gonna tell you," she said.
Meanwhile, commenting on whether the recent strengthened ringgit has affected exports and foreign direct investment (FDI), she said: "No, as you can see our exports figures showed recently were very good, it is very marginal...very marginal impact." Monday, ringgit was traded actively and managed to break a new high of 3.736 against a US dollar, before closing lower at 3.7430 against the greenback.
The ringgit firmed about 1.2 percent against the US dollar since early this year and gained about 1.7 percent since the yuan was revalued in July, last year.
