Malaysia, Australia set no date for delayed FTA deal
Friday December 1, 2006
Malaysia, Australia set no date for delayed FTA deal
KUALA LUMPUR (AFP) — The leaders of Malaysia and Australia declined to set a date for the completion of a free-trade deal due to have been agreed by mid-2006, saying the negotiations should not be hurried.
"We have not decided when it should be completed but we are aware that our respective offices are working hard on that," said Malaysia Prime Minister Abdullah Ahmad Badawi after talks with his counterpart John Howard.
Howard, who is on a two-day visit, said it was important to boost economic ties but that there should not be any pressure for a timeline on the free-trade agreement (FTA) talks which began in April 2005.
"I think it’s very important that these negotiations not get hung up about a particular time. You have to do it methodically, rather than hastily put together. An FTA hastily put together could be counterproductive," he said.
Annual bilateral trade between the countries amounts to some 7.5 billion dollars and Malaysia is Australia’s ninth largest trade partner.
Howard said in a speech to a business conference later Thursday that the trade deal would complement both economies.
"We live in a region that is fast becoming the beneficiary of probably the most historic shift of resources and human wealth since the industrial revolution," he said.
By 2015 "the centre of gravity" of the world’s middle class would have shifted from North America and Europe to Asia, he said. "Australia and Malaysia are in that part of the world...that carries with it enormous opportunity."
Trade talks between Malaysia and Australia entered their fourth round in July 2006. Malaysian officials said Thursday that a deal is expected to be reached next year.
One of the sensitive areas in the negotiations is Australia’s bid for access to Malaysia’s government procurement market, which favours the country’s majority ethnic Malays under a system of positive discrimination.
Restrictions on Malaysian government procurement have also been flagged as a sensitive area in ongoing trade negotiations with the United States, although Malaysia has flatly said it will not change its policies.
Michael Mugliston, Australia’s chief negotiator, told the conference that Australia was not seeking to completely remove the preferential system but wanted provisions to give Australian exporters greater access to Malaysia’s procurement market.
Howard is in Malaysia to reciprocate Abdullah’s visit to Australia last year. Ties between the two nations have warmed significantly since former premier Mahathir Mohamad stood down three years ago.
"I think it’s fair to say that our bilateral relationship now is as strong as it’s ever been," Howard said at a joint press conference.
Mahathir, a political firebrand who often crossed swords with Canberra over economic and political issues, had opposed accepting Australia and New Zealand as partners in the region.
