Malaysia, US making progress on proposed FTA
Business Times, Malaysia
Malaysia, US making progress on proposed FTA
By Azlan Abu Bakar
26 April 2006
MALAYSIA and the US are making progress on a proposed Free Trade Agreement (FTA), US Commerce Department Deputy Secretary David A. Sampson said yesterday.
A major issue to be discussed will be intellectual property rights (IPs), which affects many US businesses due to piracy and theft, resulting in some US$250 billion (RM910 billion) in losses annually.
"At present, about 75 per cent of the value traded by US companies is tied up in non-physical assets or intellectual properties compared with only 40 per cent back in the 1980s," he said.
Speaking to reporters after a visit to computer hardware manufacturer Western Digital (M) Sdn Bhd in Petaling Jaya yesterday, Sampson acknowledged that progress is being made in tackling the problem.
The US launched its free-trade negotiations with Malaysia in March, in a move aimed at strengthening US economic ties in the strategically important South-East Asian region.
First round of FTA talks are to start in June. It would provide an opportunity towards comprehensive and liberal benefits for the business communities of both countries.
The proposed FTA with Malaysia builds on an existing US FTA with Singapore and follows Washington’s recent decision to negotiate a free-trade deal with South Korea.
"We anticipate that just like what we have seen with Singapore and the other FTAs, there will be substantial increase in the volume of the bilateral trade," he said.
Sampson believes the FTA will help diversify the range of exports from Malaysia and move the country closer to its goal of becoming a more knowledge-based and technology-intensive economy.
Sampson leaves for Singapore tomorrow after a three-day visit to Malaysia, of which his main purpose was to learn first-hand more about the region and its business opportunities.
The three-nation tour was also to reaffirm the important relationship that the US has with Malaysia, Singapore and Indonesia.
Bilateral trade reached US$44 billion (RM160 billion) in 2005 and Malaysia is the US’ 10th largest trading partner.
