Malaysia vows not to give up on free trade talks with U.S.

KUALA LUMPUR, Malaysia: Malaysia said it would not to give up negotiating a free trade agreement with the U.S. even with the passage of a deadline for striking a deal under special measures that make it easier for a pact to win U.S. Congressional approval.
Washington has reportedly ruled out a successful conclusion to trade talks by July 1, the expiry date for U.S. President George W. Bush's special "fast-track" authority to submit a trade deal to Congress for a straight up-or-down vote without amendments.
Various legal requirements, however, mean an agreement must be completed 90 days before, or by March 31.
In Seoul, South Korean and American negotiators were striving to forge an agreement by the Friday deadline.
Malaysian Foreign Minister Syed Hamid Albar said trade talks with the U.S. were ongoing, stressing that there remains "a lot of understanding on both sides" despite disagreements — such as over the way Malaysia awards government contracts.
"I don't think we should look at it (the March deadline) as if that is the end game," Syed Hamid told reporters. "Instead, let us continue to work on something that would bring mutual benefit to both sides."
Malaysia media reports said U.S. officials have acknowledging that forging an agreement before of the expiration of Bush's "fast-track" authority was no longer possible.
The two countries are looking at 18 areas in the talks, including industrial goods, customs procedures, intellectual property rights, agriculture, financial services and telecommunications.
Two-way trade between Malaysia and the United States totaled US$44 billion (€33.6 billion) in 2005, which officials say will double by 2010 if a free trade pact is signed.
The key obstacle to the talks is Malaysia's affirmative action program that awards government tenders to Malay-owned companies to give them an advantage in competing with the wealthier Chinese minority. While some government contracts are open to bids from foreign companies, Washington wants more clarity and transparency in the bidding process.
Syed Hamid reiterated Malaysia's stance that "the bottom line is to ensure our national interest is at all times protected." Other government ministers have said the government will not alter the affirmative action policy.
Other sticking points in the negotiations are differences over liberalizing Malaysia's services sector and highly protected car industry, its ban on majority foreign ownership of banks, its poor protection of intellectual property rights, and labor and environmental issues.
Malaysian rights activists and political analysts say the trade agreement would put local farmers out of work, lead to job losses, erode workers' rights and end the availability of cheap generic drugs for those with AIDS and other diseases.

tunku : so malaysia VOWS not to give up the FTA talks with usa.well best of luck to our nation. the said that the trade currently is about 44billion usd with usa. 70% of it is by the american company operating in malaysia.so with fta or no fta the trade will continue. so syed hamid aka kodomo lion no need to put our nation's neck to them.