Published October 3, 2008

KL to discuss sensitive issues in US trade talks

Govt procurement and other thorny, erstwhile 'no-talk' matters to be aired

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(KUALA LUMPUR) Malaysian Trade Minister Muhyiddin Yassin says the government is ready to hold talks on sensitive areas including the thorny government procurement issue in trade talks with the United States.
Mr Muhyiddin: We hope for a boost in trade but it has to be on the basis of a win-win situation

'Earlier, it was a no-talk issue (but now) the Cabinet has given some indications that a non-binding sort of discussion (is possible),' Mr Muhyiddin said, according to a report by state news agency Bernama.

'It is not a negotiation or commitment. It is just a discussion,' the minister was quoted as saying.

He said a committee headed by Deputy Prime Minister and Finance Minister Najib Razak has also allowed talks on other no-go areas including Malaysia's competition policy, intellectual property rights and labour, Bernama said late Wednesday.

The US-Malaysia free trade talks began in March 2006 and have since been bogged down in sensitive areas including the services sector, investment and government procurement.

Kuala Lumpur has said it will not sacrifice its national interests to forge a deal with the US, referring to its affirmative action policies, which favours Malays in business and education.

The US is seeking access to lucrative Malaysian state contracts that favour the ethnic Malays and indigenous groups or 'bumiputras', as they are known.

Some local critics fear a free trade agreement (FTA) could leave Malaysia in an unfavourable trading position.

The Malaysian Trade Ministry said negotiations had moved forward during an eighth round of talks earlier in July in Washington.

'The ninth round of FTA talks is set to take place by year-end,' Mr Muhyiddin said, adding that Malaysia was pushing hard to secure the deal, although no deadline has been set yet.

'In general, we hope for a boost in trade but it has to be on the basis of a win-win situation,' he said.

The US is among Malaysia's top trading partners and wants a deal to be struck before President George W Bush leaves office in January 2009, although it has warned talks could end after then. -- AFP