Business

Published: Wednesday November 11, 2009 MYT 12:50:00 PM
Updated: Thursday November 12, 2009 MYT 1:23:32 PM

Malaysia hopes Obama will address trade policy direction

By NELSON BENJAMIN



nelson@thestar.com.my

SINGAPORE: Malaysia hopes that US President Barack Obama’s address at the Asia Pacific Economic Cooperation (Apec) CEO Summit here will provide some direction about the country’s trade policies under the new administration.

International Trade and Industry Minister Datuk Mustapa Mohamad said that this was important as talks on the Free Trade Agreement (FTA) between the United States and Malaysia have stalled since the middle of last year.

“Hopefully, he will use this opportunity to provide some indication of US trade policies that can guide us,” Mustapa said, adding that so far there was no indication as to whether the stalled FTA talks would be revived.

He said that the United States had concluded its FTA talks with South Korea two years ago while negotiations were still on going with Malaysia.

Obama’s attendance at the summit would also help set new directions in US and Asean relations as the country was an important trading partner, he told reporters at the 21st Apec Ministerial Meeting here on Wednesday.

However according to reports, Obama’s trip to Singapore is expected to be cut by a full day as he has to travel to Texas to attend a memorial service for victims of last week’s Fort Hood mass shooting.

He is still scheduled to make a keynote address at the Apec CEO Summit.

Asked whether Apec was still relevant after 21 years, especially with the formation of many other regional economic groupings, Mustapa replied in the affirmative, adding that it was important for Malaysia to have good relations with other countries to promote trade and investment.

“For Malaysia, Asean (the Association of South-East Nations) is an important grouping. But as a small nation in terms of people and big in terms of trade, it is important for us to have good relations with Apec members.

“Although many of Apec’s benefits are not immediate, in the long term, this grouping has been a good platform not just for heads of government but also for private sector leaders,” he claimed.

Mustapa said that Prime Minister Datuk Seri Najib Tun Razak, in his discussion panel, would be able to talk about the many initiatives taken by the Malaysian Government to boost the economy since he took over.

“We have also seen some good technical cooperation and the relaxing of visa restrictions among Apec member countries,” he said, adding that by 2015, the cost of doing business among Apec member countries would have gone down by a total of 35% over 10 years.

Mustapa said that the Apec summit would also allow the exchange views on the current status of the global economy.

“We are also interested to know the views of developed nations such as the United States on negotiations under the Doha Development Round in 2001, which was to reduce tariff and trade barriers in world trade.

“We have voiced this at several forums and will use this opportunity (at Apec) as we want this settled by the end of next year,” he said.

On the formation of Apec, Mustapa pointed out that the grouping was formed in 1989 with three basic pillars: Promoting free trade among members by 2020; easing and reducing the cost of doing business; and promoting economic and technical partnerships among countries to bridge the gap between developed and less developed member countries.

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