Malaysia announced on Monday it has terminated the free trade agreement (FTA) with the United States, but is constructively negotiating the Trans-Pacific Partnership pact that involves the United States, Malaysia, Australia, New Zealand, Peru, Chile, Vietnam, Singapore and Brunei.

"We have not been engaged with the U.S. a couple of years ago and we decided to terminate the U.S.-Malaysia free trade agreement now," Minister of International Trade and Industry Mustapa Mohammad told reporters at a conference.

"But we are negotiating the Trans-Pacific Partnership pact," he said.

"It is a high standard negotiation and we have talked in specific details what tariffs to look at and what sector to open up, for example, the financial sector. Malaysia is playing a constructive role in the discussion," he added.

The Malaysia-U.S. free trade agreement was initiated in 2005.

Negotiations for the agreement hit a snag in 2007 after they failed to be concluded before a deadline amid concerns by the U.S. side over some of Malaysia's national policies and tender system.

Malaysia announced the agreement to be suspended in 2009 in protest against the U.S. support of an Israeli attack in Gaza before deciding a year later to join the Trans-Pacific Partnership talks.

The trade deal, proposed by the United States, would promote greater market access and regional trade among signatories if sealed.

Negotiators of the deal are currently on their eighth round of talks in Chicago. A ninth round of talks is scheduled to be held in Lima next month.

Related

• Malaysia defeats U.S. at Uber Cup finals

Go to Forum >>0 Comment(s)