US-Malaysia FTA talks likely to conclude in March despite reservations

US-Malaysia FTA talks likely to conclude in March despite reservations - US

	Published : Wed, 31 Jan 2007 06:51 By : Agencies Print this Story

KUALA LUMPUR (XFN-ASIA) - The US said it is optimistic free trade talks with Malaysia can be successfully concluded by March despite reservations expressed by Malaysia that US demands may undermine the country's sensitive policies on Bumiputra rights.

US trade representative Karan Bhatia said talks have been hampered by conflicting views in the areas of services and procurement but is confident it can be overcome.

''There are concerns that US demands in the area of government tenders and procurements may hurt the country's social policies, especially in regard to Bumiputra rights, but we want to assure them that this is not our intention,'' Bhatia said.

''I think we can overcome this if the Malaysian government understands our position, so we need to shed more light on this,'' he added.

Bhatia said US firms had requested more transparency and clarity in these two areas.

'This preferential treatment is not unique to Malaysia and it is not new to us. What US firms want is more transparency and clarity in these two areas of services and procurement,'' he added.

Malaysia indicated for the first time in November last year that it may soon conclude a free trade pact with the US, its key trading partner.

'If the US continues to demonstrate flexibility as shown during the third round of negotiations (in Malaysia), I am confident a mutually beneficial agreement could be reached in the very near future,' Malaysian trade minister Rafidah Aziz was quoted as saying then.

Malaysia has a quota policy which favours primarily Malays, although other indigenous groups also benefit from it.

Bhatia said he remains optimistic that the talks can be concluded when the fifth round of negotiations starts next week in Kota Kinabalu.

(1 usd = 3.50 rgt)

john.tan@xinhuafinance.com

US-Malaysia FTA talks likely to conclude in March despite reservations - US