Malaysia to ensure safeguards in FTA talks with US: Rafidah
Business Times, Malaysia
Malaysia to ensure safeguards in FTA talks with US: Rafidah
27 June 2006
Malaysia will protect its interests when negotiating a free trade agreement (FTA) with the US, Minister of International Trade and Industry Datuk Seri Rafidah Aziz says.
"Malaysia will not accept any agreement that does not contain adequate flexibilities and safeguards in all relevant areas of negotiations.
"These include longer time frames for liberalisation of sensitive products and services sectors and flexibility to undertake policy measures for Malaysia’s developmental needs," she said in a statement that was released yesterday in Kuala Lumpur.
The three-page statement is the first official document to come from the Malaysian Government since the first round of the Malaysia-US FTA talks was held on June 12-15 in Penang.
Rafidah said the first round was mainly used by both sides to clarify and understand each other’s position, register interests and concerns, and submit requests.
The negotiations covered 18 issues which were discussed in separate working groups.
The Malaysian delegation was led by the secretary-general of the Ministry of International Trade and Industry (Miti), and comprised 128 officers from various ministries, departments and agencies.
Representatives of industry associations and professional services bodies were also present.
"The discussion provided both sides an opportunity to assess common grounds and the different views and approaches on issues proposed for inclusion in the FTA," Rafidah said.
On market access issues, both sides explored the possibility of further increasing trade through the elimination of remaining tariffs.
"Malaysia submitted its request for early duty elimination for textile and garments; rubber and wood; ceramics; electrical and electronics and agricultural products; with current duties ranging from 5 to 32 per cent," Rafidah said.
Tariffs on non-sensitive products have been proposed to be eliminated faster, while sensitive products will be given flexibility.
Rafidah said that both sides also proposed that there should be adequate safeguard provisions to allow for remedial measures to be taken in the event that injury to domestic industries occur as a result of liberalisation.
On investment, the discussions focused on how to ensure that the interests of investors as well as the host government are protected.
"Malaysia raised the need to have adequate provisions in the agreement that would allow the continued pursuit of socio-economic goals as contained in the various development plans," Rafidah said.
She added that while the US expects greater market access for its services suppliers, Malaysia will progressively liberalise its services sector, taking into account its developmental status, growth and contribution to the economy.
"The FTA provides an opportunity for Malaysia to build competitiveness in sectors such as telecommunications, computer-related services, education, professional services and business-related services through greater collaboration with US service providers," Rafidah said.
On environment, competition policy and intellectual property rights, discussions are still at the preliminary stage and on what the scope covered in the FTA should be.
"Malaysia wants information sharing, technical cooperation and training to build capacity in enforcement of international agreements to be the primary objective of any agreement in these areas," Rafidah said.
She said the outcome of the ongoing negotiations will determine the cost and benefit to Malaysia in all sectors.
"Malaysia will only accept an agreement if it is satisfied that its interests in all sectors have been taken into account".
Rafidah reiterated that there is no specific timeline to conclude the Malaysia-US FTA negotiations.
Five rounds have been scheduled, with the objective of completing the negotiations, if possible, before the expiry of the US Trade Promotion Authority in June next year.
"However, Malaysia will seek whatever time frame is necessary to negotiate an agreement that will benefit Malaysia," she said.
