Under pressure to secure a free trade deal with Malaysia, the US is bowing to Malaysian demands:
MALAYSIA and the US have agreed to take contentious issues “off the table” in their ongoing (free trade agreement) FTA negotiations, International Trade and Industry Minister Datuk Seri Rafidah Aziz said.
What are those contentious issues?
“On areas like government procurement, New Economic Policy and our policies on restructuring, it is no go and they understand that.
I have blogged earlier on how Malaysia has time as a leverage. I do think Malaysia is utilizing that leverage to the fullest. Standing on higher ground while the US negotiators are running out of time, I could imagine Malaysia dictating the terms in a room somewhere in Sabah.
Nevertheless, I wish both sides would be more transparent and forthcoming to public questions. While I have an idea what the US is looking for, I could only speculate what Malaysia is demanding from the US without a way to verify it.
Even in the report, the US list is clear:
The Karambunai discussions had included elimination of tariffs, equity conditions in education and telecommunications and distributive trade.
The Malaysian list, on the other hand:
Rafidah said Malaysia made requests to the US in terms of market opening which would benefit the private sector.
It is so vague that it could mean anything under the sun.
p/s — perhaps, I have underestimated the leverage Malaysia has. On Saturday, February 10 at The Star:
KOTA KINABALU: The March deadline is likely to pass without Malaysia and the United States striking a deal for a Free Trade Agreement (FTA).
US Assistant Trade Representative Barbara Weisel said it would be “very difficult” to conclude the talks within the deadline that the United States had set.
I hope we could get the FTA signed before it is too late. It is going to be tough to get an FTA after the expiry of Trade Promotion Authority because the Democrats are expressing economic nationalism stance.
