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Steve Norton, a spokesman for US Trade Representative Susan Schwab, said the Malaysian cabinet remained locked in debate about crucial provisions of the deal including government procurement rules.</P><P>After the last round of talks in February, Malaysia had informed the United States that it needed more time to develop a political consensus in favour of the ambitious pact, he told AFP.
<P>"That
process is continuing in the Malaysian cabinet. But I think it’s clear at this
point that getting the free trade agreement done under current TPA is improbable,"
Norton said.</P><P><B>Time running out</B></P><P>The timetable is tightening because
US President George W Bush loses his Trade Promotion Authority (TPA), which allows
deals to be fast-tracked through the Democratic-led Congress, on July 1.</P><P>The
FTA negotiations need to be wrapped up by the end of March to give Congress the
requisite time of three months to consider the deal. With that deadline just two
weeks away, time has virtually run out, Norton conceded.</P><P>"Having said
that, we’re going to continue meeting and will probably have further discussions
in the next few weeks," the spokesman added.</P><P>"You don’t want to
let negotiations that have been going on for the best part of a year to just disappear."</P><P>The
two countries have held five rounds of talks but negotiations have bogged down
over 58 unresolved issues, and no further rounds have been scheduled between the
United States and its 10th largest trading partner.</P><P>Among sore points for
US trade negotiators are Malaysia’s positive discrimination policies for its majority-ethnic
Malay community. The policies give preferential treatment to Malay-run companies
in government contracts.</P><P>Malaysian farmers, activists and opposition parties
have been demanding a halt to the talks, arguing an FTA would damage livelihoods.</P><P><B>Safeguard
nation’s interest</B></P><P>"The government fully understands the thinking
and concerns of the people on the matter," Malaysian Prime Minister Abdullah
Ahmad Badawi said after an inconclusive cabinet meeting on March 7.</P><P>"I
would like to assure that the nation’s interest will always be safeguarded and
would not be sacrificed in any way," he said, according to the New Straits
Times newspaper.</P><P>Malaysia’s Trade Minister Rafidah Aziz insisted after the
February round the talks would continue, and has said both parties are trying
to resolve outstanding obstacles informally.</P><P>But she said "no-go"
issues, such as the positive discrimination regime, would be excluded from any
future round of negotiations. – AFP</P>
<P><I>Source: http://www.malaysiakini.com/news/64652</I>
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