Trade News: 

The U.S. and Malaysia initiated negotiations on a Free Trade Agreement (FTA) in June 2006 with a common commitment to conclude a comprehensive, high-quality FTA.  Malaysia is our 10th largest trading partner with more than $49.1 billion in total trade during 2006.  Increased access to Malaysia’s market that an FTA would provide would boost trade in a wide range of both industrial and agricultural goods and services, enhancing employment opportunities in both countries.  An FTA with Malaysia also would advance President Bush’s Enterprise for ASEAN Initiative, under which the United States hopes to enhance U.S. trade and economic ties to ASEAN countries, reinforcing a strong U.S.-ASEAN relationship, which is a force for stability and development in the Southeast Asian region.  Finally, an FTA with Malaysia would deepen the relationship between the two countries and support our cooperative efforts on key economic, political and security issues. 

While it is unlikely that negotiations will be completed under current Trade Promotion Authority, the United State and Malaysia have agreed to continue to work toward their goal of a high-quality, comprehensive FTA that will benefit both economies. When an agreement is within reach, the United States will work with Malaysia to find a mutually acceptable way to conclude and seek legislative approval of such an agreement.

Trade Data:

U.S. goods exports in 2006 were $12.6 billion, up 20 percent from the previous year. Corresponding U.S. imports from Malaysia were $36.5 billion, up 8.5 percent. Malaysia is currently the 18th largest export market for U.S. goods.

U.S. exports of private commercial services (i.e., excluding military and government) to Malaysia were $1.4 billion in 2005 (latest data available), and U.S. imports were $708 million. Sales of services in Malaysia by majority U.S.-owned affiliates were $1.3 billion in 2004 (latest data available).

The stock of U.S. foreign direct investment (FDI) in Malaysia in 2005 was $10 billion (latest data available), up from $8.1 billion in 2004. U.S. FDI in Malaysia is concentrated largely in the manufacturing, and mining sectors.