Take that, Hugo Chavez!
Bright Singapore and lovely Thailand have already negotiated pacts to drop tariffs, challenge China’s export juggernaut, and make lots of money for themselves through trade with the U.S. Now splendid Malaysia is planning to do the same. Malaysia in particular is an important partner because it’s a good democracy and a Muslim-majority country that’s full of smart people who know the advantages of free trade. They’re Asians and don’t do stupid counterproductive things in the name of nationalism, socialism, fundamentalism, or anything else that fails. Malaysia in particular will be a beacon to other Muslim states who might be hesitating about free trade or think free trade is something for other people. Not so!
Free trade is breaking out all over!
Confidence and prosperity of the kind seen during the world’s great renaissances will be the final result. Everyone is going to gain in this. Living standards will rise through fair and open and tough competition. Anyone who wins will really be a winner, not just some aristocrat who got crowned that based on the accident of his birth or connections.
It’s part of a snowballing trend. Every nation on earth (except for the tyrannies) is seeking to sign on for free trade. Free trade is like democracy, breaking out all over. And free trade is a pillar of a successful democracy, because everyone who is allowed to think for himself seeks the opportunity of free trade. That goes for good moderate democratic Muslim states too.
Viva Malaysia!
Here is what I got in my mailbox:
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
USTR Press Releases are available on the USTR website at www.ustr.gov.
For Immediate Release:
March 8, 2006
United States, Malaysia Announce Intention to Negotiate Free Trade
Agreement
Washington, DC – U.S. Trade Representative Rob Portman today announced
the Administration’s intent to negotiate a Free Trade Agreement (FTA)
with Malaysia, with the goal of removing tariffs and non-tariff barriers
and expanding trade between the countries.
Portman made the announcement on Capitol Hill and was joined by
Malaysia’s Minister of Trade Rafidah Aziz and a bipartisan group of
leaders in Congress. The negotiations will begin after the expiration
of a 90-day consultation period with the U.S. Congress.
“Malaysia has been at the forefront of the economic dynamism
transforming Asia in recent years,” Portman said. “It already is our
tenth largest trading partner, with $44 billion in two-way trade in
2005. Combined with a new trade opening agreement, Malaysia’s rapidly
growing economy will help generate meaningful export opportunities for
our workers, service providers, and farmers.”
“This FTA would be the third we are negotiating in the economically
vibrant and strategically important Southeast Asia region and will
advance the President’s Enterprise for ASEAN Initiative,” said
Ambassador Portman. “Removing trade and investment barriers between our
two nations will improve market access, enhance competitiveness and
increase prosperity for both countries.”
“Bipartisanship is paramount in international trade, and I’m pleased to
see leaders in Congress who are both Republicans and Democrats
supporting today’s launch,” Portman added. “USTR will continue its
intensive bipartisan consultations throughout the negotiations.”
Background
The United States is Malaysia’s largest trading partner and the largest
foreign investor in Malaysia. U.S. exports to Malaysia totaled $10.5
billion in 2005, with top export categories including electrical
machinery, machinery, optic and medical instruments, aircraft, and
plastic. The largest categories of imports from Malaysia were
electrical machinery, machinery, furniture and bedding, rubber, and
optic and medical instruments. Malaysia is also a valuable partner in
the ongoing global trade negotiations, commonly known as the WTO Doha
Development Agenda. And Malaysia is an important player, particularly
with respect to strengthening the protection of intellectual property
rights, in the Asia Pacific Economic Cooperation (APEC) forum.
U.S. Trade Agenda
The United States is working to open markets globally in the Doha WTO
negotiations; regionally through the APEC forum and the Free Trade Area
of the Americas (FTAA) negotiations; and bilaterally with FTAs. Since
2001, FTAs with Australia, Chile, Jordan, Morocco and Singapore have
entered into force. The Bush Administration has also concluded
negotiations with Bahrain, Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras, Nicaragua, Oman, Peru and now Colombia.
Negotiations are under way or about to begin with ten more countries:
Ecuador, the Republic of Korea, Panama, the five nations of the Southern
African Customs Union (SACU), Thailand, and the United Arab Emirates.
New and pending FTA partners, taken together, would constitute America’s
third largest export market and the third largest economy in the world.
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