KUALA LUMPUR
- MALAYSIA said on Thursday that negotiations towards a bilateral
trade pact with the United States have been shelved and it is now
considering joining a regional deal promoted by the US.
Prime Minister
Najib Razak said Washington had 'put on the back burner' a
bilateral deal negotiated over the past four years and that the focus is
now on the Trans-Pacific Partnership (TPP).
'There is
no more discussion on a bilateral FTA with the United States. That is
the formal position of the United States,' Mr Najib told a
press conference.
US-Malaysia trade
talks had dragged on for eight rounds, bogged down in sensitive
areas including Malaysia's system of affirmative action for Muslim
Malays who dominate the multi-racial population. In particular, the US
had sought access to lucrative Malaysian state contracts that favour
Malays and indigenous groups, or 'bumiputras' as they are known.
Mr Najib,
who is also the finance minister said the US preferred the vehicle
of the TPP, a once-obscure pact founded by Brunei, Chile, New Zealand
and Singapore. 'They have indicated a preference for the TPP to be
considered and the cabinet has given the ministry of international trade
and industry (MITI) the green light to look deeply into the
initiative,' he said. 'If it benefits Malaysia, the cabinet will make
the final decision. So a very deep, comprehensive study is being
undertaken by MITI now.'
Mr Najib
said Malaysia will have to make a quick decision, saying that
'certain formal events will be unfolding' but did not elaborate on what
they were. The current TPP members will meet this month to discuss
expanding membership to four other nations - Australia, Peru, Vietnam
and the United States. -- AFP