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.