[744] Of things to watch: US-Malaysia FTA

United States and Malaysia are planning for a free trade deal (tag). According to Reuters:

WASHINGTON (Reuters) – The United States and Malaysia will announce plans on Wednesday to negotiate a free trade agreement, industry and congressional sources familiar with the decision said.

U.S. trade officials have previously said they were very close to launching talks with Malaysia, the United States’ 10th-largest goods trading partner.

U.S. Trade Representative Rob Portman and Malaysian International Trade and Industry Minister Rafidah Aziz are expected to announce plans to begin negotiations at a joint news conference with U.S. lawmakers, one source said.

I wonder how the FTA would affect Malaysian automotive industry. And rivalry between palm and soybean oil industries would probably flare up during negotiation.

It wouldn’t be too far off if I suspect some sort of bullying by the United States’ representatives to occur. From what I read, the US trade representatives are notorious of that. Stiglitz made that even more vivid. Moreover, when US-Singapore FTA was discussed a number of years back, the United States representatives managed to convince the Singaporean government to legalize chewing gum – we all know about how much the Singaporean government hates chewing gum! Well, partly anyway – Singapore dragged its feet.

I support free trade. I even go farther and support free flow of trade and labor. Not in totality of course since sometimes, things need to be done on case by case basis but in general, I’m for free trade. However, most free trade agreements are only free in name and hardly fair at all. For instance, remember India’s offer last year? Thank goodness that has been flatly rejected.

For this very reason, it’s good to know that Rafidah Aziz will lead Malaysian team to the table. She might be unpopular but she has the experience to withstand or even counter United States’ pressure. I’ve problem imagining of whom would be more suitable for the job. Syed Hamid Albar? Maybe but Abdullah Ahmad Bawadi certainly can’t do.

p/s – oh, yea. Ajax 6 – 0 Sparta. PSV is next.