Malaysia-India joint study on CECA and possible FTA
Daily Express, Sabah, Malaysia
18 January 2005
M’sia-India joint study on CECA and possible FTA
Kuala Lumpur: Malaysia and India have agreed to undertake a joint feasibility study on the Comprehensive Economic Cooperation Agreement (CECA), which includes the possibility of having Free Trade Agreement (FTA) between the two countries.
Minister of International Trade and Industry, Datuk Seri Rafidah Aziz and its counterpart Kamal Nath, Minister of Commerce and Industry of India met Monday to discuss the terms of reference for the joint study group.
Rafidah said the study was expected to be completed within six months, and the first meeting would be held in India, next month.
"During the process, both countries will consult its own private sector to determine which products would be more suitable to be included in the FTA list for implementation," she told reporters after the meeting at her office, here Monday.
They had also discussed about the possibilities of having "early harvest", to immediately, bring in a list of products for implementations in market opening.
The meeting between the two ministers followed the visit by the Prime Minister Datuk Seri Abdullah Ahmad Badawi to India in December and is aimed at a closer economic cooperation between Malaysia and India.
Elaborating further, Rafidah said the study would identify the strategic and economic benefits that could be derived from the establishment of CECA which encompasses a whole range of economic cooperation programmes and items.
Rafidah said the joint study group, among other things, would develop a policy framework for enhancing trade in goods, services and investment including the feasibility of a FTA in goods and non-financial services.
"Should we find during the study that it is feasible to have the FTA, then officers of both countries would draw up a framework that could be agreed upon by both governments, which can be forwarded to both leaders for their agreement and announcements during their next meeting," she said.
The study would also evolve appropriate framework and modalities for investment cooperation with a view to creating a favourable climate for encouraging investment flows across border.
Meanwhile, Kamal Nath said the CECA would help promote and further enhance trade and investment linkages between Malaysia and India.
The joint study group will be co-chaired by S.N. Menon, Commerce Secretary Ministry of Commerce India and Secretary General of MITI Datuk Sidek Hassan.
During the period January-November 2004, total trade between Malaysia and India amounted to RM14.8 billion, while exports stood at RM10.3 billion. Bilateral trade grew by almost seven fold from RM1.56 billion in 1993 to RM12.2 billion in 2003.
During Jan to Nov 2004, a total of six investment projects in the manufacturing sector worth RM260.8 million from India were approved, including in petroleum products, activated carbon, automotive components, moulds and tools and recycling of plastic products.
Malaysian investments in India from 1997 to September 2004 amounted to RM430 million, mainly in construction, palm oil plantation, software production, telecommunication equipment and electrical apparatus for medical use.- Bernama
