US expects Malaysia FTA talks to conclude by year-end
Business Times (Malaysia)
US expects FTA talks to conclude by year-end
By Rupa Damodaran
June 17 2006
THE US is pleased with the progress of the first round of the US-Malaysia Free Trade Agreement (FTA) negotiations, and expects it to conclude by the end of the year, Assistant US Trade Representative Barbara Weisel said.
Weisel, who is the chief negotiator of the US Government, said the second round of discussions in Washington starting from July 17, would embark on the issue of market access and include the elimination of tariffs.
Malaysian manufacturers are seeking for the removal of tariffs from footwear, textiles, apparel and leather products.
"We are both seeking a robust agreement and one that achieves a balance of interests that will bring real and tangible benefits to both sides.
"Our meetings in Penang have reinforced our belief on the importance of this FTA to supporting Malaysia’ economic goals and deepening US-Malaysian trade and investment ties," she said at a media briefing in Kuala Lumpur yesterday.
The FTA talks were held in Penang from June 12 to June 15.
After the upcoming Washington talks, there will be three more rounds of negotiations to be held on September 17, October 30 and December 11.
"In the first round, both sides laid out issues, questions and concerns so that we can identify the sensitivities and opportunities both sides are seeking.
"When we get to the second round, we start to go through the text in detail and would also go through the market access portion and tariffs," she said.
On the table, both sides will be discussing 23 chapters including sensitive areas such as government procurement.
"We had a good exchange of information on each other’s systems and approaches to government procurement and we had the opportunity to explain the US system to the Malaysian side and the manner in which we deal with exceptions to the procurement code that we have.
"We understand the sensitivities with the preference programme here and preserving them, and we explained we also have preference programmes and we would like to discuss further in the next round," Weisel said.
She also described Penang state government officials as acutely aware of the fierce competition they face in the region and globally.
"They are focusing intently on what they must do to attract new industry in sectors such as biotech and medical technology to make Penang’s economy more competitive and to provide greater benefits to the people," she added.
