The Malaysia - US Free Trade Agreement

The negotiations with the United States are stillCelso Amorin, the Brazilian Minister of Foreign
ongoing and Cabinet is reviewing progress and willRelations, said he was "prepared to be locked up in a
consider how to move forward.room with the US and European negotiators together
While the pressure is on Malaysian negotiators with awith Lamy (Pascal Lamy, WTO director-general),
"deadline" of the impending expiry of the fast-track,throw away the key until we reach an agreement".
the same deadline applies to the multilateral tradeEven with the right noises made when the trade
negotiations under the auspices of the World Tradeministers met in Davos on the sidelines of the annual
Organisation (WTO).World Economic Forum last month, there has been
It is perhaps more important from a developinglittle progress since.
country perspective that the Doha DevelopmentLamy, who has been shuttling between Washington,
Round, which has been comatose since last July, beBrussels and other European capitals, said there was
revived.a need to "switch from a flying zone to an approach
It is essential that developed countries, including themode" in the negotiations. He, nevertheless, stressed
US and the European Union, deliver on theirthat the change can only be done "when you get a
development promise of the round ahead of thesignal from the ground that it is appropriate to land".
expiry of the fast-track authority.Since there are no clear signs for a "landing",
The multilateral trade negotiations, which were "sold"countries are looking to bilateral and regional free
to the developing countries, are being held hostagetrade arrangements.
by the developed countries with focus on theirAmorin notes that bilateral agreements are not driven
development agenda.by trade but other reasons. He stresses the need for
The expiry of the US fast-track authority also meansa "balanced agreement in a multilateral forum like the
that the Doha Development Agenda, too, will beWTO".
subjected to the same scrutiny as the Malaysia-USLamy, who has the difficult task of bringing everyone
bilateral agreement, if and when it is concluded.to the table, reviving the multilateral negotiations and
The window to conclude the multilateral negotiations,getting them on track, pointed out that the purpose
for it to be submitted to Congress for approvalof the Doha Development Round was to "re-balance
before expiry of the fast-track authority, is alsothe system in favour of developing countries".
closing fast.Sounding exasperated, Lamy said, "It's about tariffs
Prospects for the renewal of the authority appearand it's about rules -- that is what the trade round is
even more uncertain after the mid-term elections inall about. We don't have a bilateral fish and a
the US. The last time the president's fast-trackmultilateral fish."
authority expired, it took eight years (between 1994But there is a proliferation of bilateral and regional
and 2002) for it to be renewed.agreements.
The developed nations seem to lack an urgency toBilateral agreements, according to Doris Leuthard, the
get the negotiations on track. There is more talk ofSwiss Federal Councillor of Economic Affairs, are
meetings and negotiations rather than actualsecond best options after the multilateral agreement.
negotiations.Second best or not, the WTO has been notified of
Kamal Nath, India's Minister of Commerce andmore than 330 bilateral and regional trade
Industry, said he was not driven by the fast trackagreements. Indeed, as of 2005, 17 free trade
but wanted a multilateral treaty as "we believe theagreements were in force with 60 more in the
rules-based multilateral system is as important topipeline in China, India and Southeast Asia alone.
India as it is to the US and Europe". He added thatWith still no clear sign for a "landing" of the multilateral
the content of the agreement was as important astrade negotiations, countries are likely to seek out
its completion.more bilateral and regional trade partners for
India, together with Brazil and important developingagreements. And in many of these cases, the expiry
nation traders, are keen to see an agreement butof the US fast-track authority will not affect nor
not one that disadvantages their emergingdictate the pace of negotiations of these
economies.agreements.