[Ip-health] Bernama - M'sia, US Launch FTA Negotiations

[Mike Palmedo]

http://www.bernama.com.my/bernama/v3/news_business.php?id=3D184582

M'sia, US Launch FTA Negotiations

KUALA LUMPUR, March 9 (Bernama) -- Malaysia and the US today jointly
announced the launch of negotiations for free trade agreement (FTA),
with formal negotiations on the FTA commencing in three months and
expected to be completed by early 2007.

The Ministry of International Trade and Industry (MITI) said that the
joint announcement was made by its minister Datuk Seri Rafidah Aziz and
US Trade Representative Rob Portman in Washington on Wednesday.

The launching of the FTA negotiations would provide an opportunity to
both countries to further strengthen bilateral trade and investment
relations, MITI said in a statement issued here Wednesday.

It said that Malaysia had on May 10, 2004 signed the Trade and
Investment Framework Agreement (TIFA) which provides opportunities to
both countries to address bilateral trade and investment issues, and has
laid the foundation for the launching of the FTA negotiations.

MITI said that three meetings of the Joint Council on Trade and
Investment have been convened as provided for under TIFA.

The Malaysia-US FTA negotiations is expected to focus mainly on
liberalisation of trade in goods, services and investment, including
flexibilities and longer phase-in period for sensitive sectors.

It would promote and facilitate trade and investment flows and
cooperation activities to address impediments to trade in the areas of
Intellectual Property Rights, Standards and Conformance and development
of Mutual Recognition Arrangements.

It would also look at collaboration to enhance competitiveness in
specific sectors such as tertiary education, healthcare and tourism as
well as capacity building and technical assistance in the development of
Malaysian small medium enterprises (SMEs).

The US is Malaysia's single largest trading partner while Malaysia is
the 10th largest trading partner for the US.

In 2005, trade with US was valued at RM160.9 billion (US$42.5 billion),
and accounted for 16.8 percent of Malaysia's global trade.

The US is Malaysia's largest export destination, with total exports
valued at RM105 billion (US$27.7 billion) or 19.7 percent of Malaysia's
global exports in 2005.

Malaysia's major exports to the US were office machines; electrical
machines, appliances and parts; telecommunication and sound recording
equipment; articles of apparel; and furniture and parts.

In terms of imports, the US is Malaysia's second largest source of
imports in 2005, with total imports valued at RM55.9 billion (US$14.8
billion). Imports from the US comprised mainly of manufactured goods
including electrical machines, appliances and parts; office machines;
scientific equipment and apparatus; power generating machinery; and
transport equipment.

As for investments, US remains an important source of foreign direct
investment in the manufacturing sector in Malaysia.

In 2005, the US was the largest source of foreign direct investments
with total investments amounting to RM5.155.0 billion (US$1.4 billion),
and representing 29 percent of total approved foreign direct investments
in the manufacturing sector.

US investments for that period were concentrated mainly in petroleum
products; electrical and electronics products; fabricated metal
products; transport equipment; and machinery manufacturing.

US companies in Malaysia are also active in establishing research and
development (R&D) centres and expanding and diversifying into the
manufacture of high value-added and high technology products.

-- BERNAMA

--
Mike Palmedo
Research and Web
Consumer Project on Technology
T =96 202-332-2670
F =96 202-332-2673
mpalmedo@cptech.org