Monday, November 24, 2003
Malaysia wants free trade pact with India
Associated Press New Delhi, November 24
In an attempt to keep pace with increasing trade between its neighbors and India, Malaysia wants a free trade pact with New Delhi, a senior Indian official said on Monday.
Kuala Lumpur may have to wait, however, until New Delhi finalizes a larger agreement on economic cooperation with the Association of Southeast Asian Nations (ASEAN), of which Malaysia is one of 10 members, said Secretary in the External Affaris Ministry RM Abhayankar.
"We have received a request from Malaysia, but we would like to wait and see how negotiations progress with the ASEAN," Abhayankar told The Associated Press. The Malaysian request came during India's free trade negotiations with Thailand and Singapore. Once implemented, these agreements may offer Thailand and Singapore an advantage over Malaysia in trading with India.
Although India is also negotiating an agreement on economic cooperation with ASEAN, the scope of the bilateral pacts with Thailand and Singapore are wider. Also, they will be finalized and implemented much ahead of the India-ASEAN agreement.
A draft framework for the India-ASEAN agreement was signed by Prime Minister Atal Bihari Vajapayee during the October summit of ASEAN countries in Bali, Indonesia.
The agreement will be implemented in two phases, starting 2011 and 2015. The five better-off countries of ASEAN -- Thailand, Singapore, Malaysia, Indonesia and Brunei -- will be covered in the first phase, while the less developed Cambodia, Laos, Myanmar, Vietnam and the Philippines will implement the deal in the second phase, Abhayankar said.
He said the Government didn't want to rush into things. "We want to first get over with the India-ASEAN agreement. We are hoping to finalize the agreement with Singapore by April," he said.
Malaysia exports mostly palm oil and rubber to India, and several Malaysian companies are increasingly investing in India's construction sector. India exports a range of manufacturing goods, chemicals and pharmaceuticals.
© Hindustan Times Ltd. 2003.