Malaysia, India to sign FTA by year-end
New Straits Times
Malaysia, India to sign FTA by year-end
KUALA LUMPUR, Mar 28 2005
India and Malaysia are on the verge of signing a comprehensive economic co-operation agreement by year-end. It will include free trade between the two nations.
The signing may be done during a visit by Indian Prime Minister Dr Manmohan Singh to Malaysia in December.
Indian High Commissioner to Malaysia R.L. Narayan said both sides had worked hard on the matter following Prime Minister Datuk Seri Abdullah Ahmad Badawi’s visit to India last December.
In the past three months, they have charted a "road map" of the broad parameters of the agreement.
"A lot of work has been carried out since December, with both sides being given specific chapters of the agreement to study," he said.
Narayan said both Governments had agreed to fast track the agreement.
He expected the joint study to be ready by September, when both sides would probably address the final draft agreement.
The process began in January, when Indian Commerce and Industry Minister Kamal Nath, on a visit here, discussed the terms of reference for the agreement.
Subsequent meetings clarified its substance.
Emphasising that the agreement would boost bilateral ties, the envoy said Malaysia would receive preferential treatment in India and vice-versa.
Manmohan mooted the idea of a comprehensive economic co-operation agreement during Abdullah’s India visit.
The Indian Prime Minister’s suggestion was actually an expansion of Abdullah’s proposal, earlier in the visit, that a free-trade agreement be signed between the two nations.
Abdullah said at that time that Malaysia would make adjustments to suit the needs and circumstances of both nations.
