Business Roundtable Calls Proposed U.S.-Malaysia Free Trade Agreement an Important Opportunity to Boost U.S. Exports

FTA Holds Promise of Significant U.S. Economic Growth

Washington, D.C. - Business Roundtable praised the launch of negotiations on the proposed U.S.-Malaysia Free Trade Agreement (FTA) as a significant economic growth opportunity for the United States, and a big step forward in strengthening the U.S. economic position throughout Southeast Asia.

"U.S. business strongly supports the Administration's efforts to establish a network of bilateral free trade agreements in Southeast Asia," said John J. Castellani, President of Business Roundtable. "The region is growing rapidly, and the U.S. must aggressively seek to forge new and stronger trade ties if we are to continue our own economic growth. Malaysia is already an important U.S. trading partner, and it will become an even more significant destination for U.S. goods and services when this FTA becomes a reality."

In 2005, the U.S. exports to Malaysia totaled nearly $10.5 billion. Leading the way were U.S. manufactured electric machinery and equipment, civilian nuclear energy equipment, medical devices and aircraft.

Nearly 85 percent of Malaysia's exports to the United States currently enter the U.S. market tariff-free, while U.S. exports are often faced with tariffs of six percent or more.

In its quest to develop stronger trade ties in Southeast Asia, the U.S. has reached trade and investment framework agreements (TIFAs) with Indonesia, Philippines, Thailand, Brunei Darussalam and Malaysia. The U.S. goal is to build on the success of the U.S.-Singapore FTA to create a network of bilateral FTAs throughout the region.

"An FTA with Malaysia is a logical progression of U.S. trade policy. While there are important issues yet to be negotiated, we strongly support the initiative and believe it is in the best interests of the U.S. economy," Castellani concluded.

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Business Roundtable (www.businessroundtable.org) is an association of chief executive officers of leading corporations with a combined workforce of more than 10 million employees and $4 trillion in annual revenues. The chief executives are committed to advocating public policies that foster vigorous economic growth, a dynamic global economy, and a well-trained and productive U.S. workforce essential for future competitiveness.

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