January 10, 2007

 

US keen to forge deals with Malaysia, South Korea

 

 

The US said it saw "real interest" in concluding free trade agreements with South Korea and Malaysia, as crucial talks resume in the new year to strike deals ahead of the expiry of President George W Bush's trade-negotiating authority.

 

The US began its fourth round of negotiations with Malaysia in San Francisco, Monday, Jan 8. The sixth round would take place next week.

 

Though there were certain sensitive subjects in the talks which were making the negotiations complex, both sides saw a strong interest in concluding the agreement, US Trade Representative (USTR) spokesman Stephen Norton was quoted as telling AFP.

 

The US has been keen on forging deals by early April before the expiry of President's powers to strike free trade agreements.

 

The two sides had detailed discussions on various issues in the last round of talks in Kuala Lumpur. The two sides need to revise their fundamental approach to the whole negotiations, said an official pointing out the US was using a "negative list" approach while Malaysia went for a positive list approach.

 

Washington includes in its negotiation list only areas which it wants the other side to liberalise while Malaysia incorporates areas it is prepared to open up.

 

Both sides had exchanged initial market access offers in goods and agriculture at the last round and that the initial offers were a solid basis for continued negotiations, said Norton.

 

He seemed hopeful of concluding the deal by April.

 

The negotiations with South Korea, beginning Jan 15 in Seoul could be more complex though.

 

An FTA with South Korea would be the US' biggest deal since the North American NAFTA pact in 1994, marrying two economies, Canada and Mexico, whose bilateral trade last year totalled US$ 72 billion.