US expects smooth talk with Malaysia on future FTA
Bernama, January 14, 2006
US Expects Smooth Talk With Malaysia On Future FTA
By Arul Rajoo
BANGKOK, Jan 14 (Bernama) — Malaysia and United States will start preliminary discussions on free trade area (FTA) agreement in Kuala Lumpur next week with US chief negotiator expressing confident it will take place in smooth and protest-free environment.
Assistant US Trade Representative for Southeast Asia Barbara Weisel, who led the sixth round of FTA talks with Thailand this week, said she believed that the talk would be held without strong demonstrations, unlike the one her team faced in Chiang Mai.
"This will be a private meeting, discussion with the (Malaysian) government on their understanding of what kind of commitments they are willing to make and whether we can move forward and conclude in the time frame," she said here last night.
She said the US-Malaysia FTA negotiations would touch a wide range of sectors, including agriculture, telecommunications, financial and patent rights, similar to the FTA talk with Thailand which was marred by demonstrations.
Thousands of protesters tried to break into the meeting venue in Chiang Mai earlier this week, forcing the two sides to change venue.
Thai protestors have denounced the talk, which begin in July, 2004, saying that US proposal to provide five-year data exclusivity (patent protection) for new drugs on the market would lead to an increase in the cost of medicine for HIV patients. They also felt that farmers would lose their competitive edge.
Weisel said there are concern that both sides could not finish the negotiation by May, adding that the US-Thai talk took longer than any negotiation done todate.
US, which has signed FTA with Singapore, started FTA talks with other Asean countries namely Malaysia, the Philippines, Indonesia, the Philippines, Thailand and Brunei since 2002.
Last December, the Economic Affairs Counsellor at the US Embassy in Kuala Lumpur, Colin S Helmeron said the possibility of Malaysia and US signing a FTA agreement before June 2007 was possible as both governments are seriously undertaking a study on the pact.
He said the deal could be done before the Trade Promotion Authority (TPA) is dissolved on July 1, 2007. The TPA limits the US Congress to decide for or against any trade agreement.
Total bilateral trade between Malaysia and US in 2004 was RM147.9 billion compared with RM126.8 billion previously.
Both countries signed a Malaysia-US Trade and Investment Framework Agreement (TIFA) on May 2004.
On the US-Thai FTA talk, Weisel reiterated that both countries would benefit from the deal, saying that their US$28 billion in trade and US direct investment of US$7.7 billion in the country would rise.
"The US already buys more products than any country in the world and the FTA’s new market access will only increase trade in the future. Without FTA, Thai exporters will lose their competitive edge," she added.
The liberalisation of Thai service sectors, including telecommunications, financial services, distributions and strengthening of intellectual property would improve investment climate and lead to more job creation, she said.
Weisel cited Jordan as a good example of positive FTAs, saying that Jordanian firms have become the biggest pharmaceutical exporters in their region.
On concern of generic drugs becoming expensive, Weisel said it would continue to be sold at whatever prices the Thai generic companies choose, adding that US has committed more than US$12 million annually towards HIV/AIDS prevention in the country.
— BERNAMA
