[Ip-health] AP: Malaysia vows to safeguard sovereignty

[Mike Palmedo]

http://www.businessweek.com/ap/financialnews/D8I79QFO0.htm?sub=apn_home_down&chan=db

Malaysia vows to safeguard sovereignty

Associated Press

JUN. 13 7:10 A.M. ET  The Malaysian government Tuesday vowed to
safeguard its sovereignty in negotiating a free trade pact with the
United States, rejecting concerns of social activists that the deal
would only benefit Washington.

"We are not going to give up our sovereignty," Deputy International
Trade Minister Ng Lip Yong was quoted as saying by the national news
agency, Bernama.

"We are very cautious, we know that there are a lot of important issues
involved," he said. "It is not like we just go in and just sign
everything on the table."

U.S. and Malaysian officials on Monday launched the first round of the
talks, scheduled to last four days, on Malaysia's northern island of
Penang toward removing trade barriers and setting up a free trade area.
Both sides hope to conclude negotiations by the end of this year.

The U.S. team leader, Assistant Trade Representative for Asia-Pacific
Barbara Weisel, said Washington would like more transparency in awarding
of government contracts, greater imports of foreign cars and better
access to financial markets.

Under Malaysia's affirmative action policy, many government contracts
are currently given to companies owned by the majority Malay population
without open bidding.

Meanwhile, Malaysia's auto policy aims to protect national car company
Proton by imposing high tariffs on imported cars. Recently, the
government cut the tariffs but foreign car makers are calling for a
level playing field.

Some 100 representatives of various nongovernment groups staged a
peaceful protest in Penang on Monday to express reservations about the
talks, Bernama reported.

Ng said the activists were misguided, noting that local sectors such as
textile businesses could reap benefits such as import duty exemptions
from a free trade agreement.

"Don't protest until you know what are you protesting at," he was quoted
as saying. "In the negotiations, the U.S. will offer something, then we
will say whether it is enough or not and what we can offer in return."

Malaysia is the United States' 10th largest trading partner with US$44
billion (euro36 billion) in two-way trade. Officials predict it will
double by 2010 once the free trade pact is in place.

Washington wants to send a free trade deal to Congress for approval
before July 2007, the expiration of President George W. Bush's authority
to negotiate trade deals that require Congress to approve or reject them
without adding any amendments.