Malaysia has recently threatened to stop its FTA (free trade agreement) talks with the United States due to the latter's call for the former to end its development agreement on energy with Iran. It must be noted that a US lawmaker has raised some concerns regarding the energy deal between Malaysia and Iran. Under the global trade pact, Malaysia will develop a number of gas fields in Iran. It will also construct LNG (liquefied natural gas) plants in the Middle East nation. The global trade agreement on energy between the two countries is estimated to be worth $16 billion.
The US has discouraged Malaysia from pursuing the global trade deal due to the resistance of Iran to halt its uranium enrichment program despite the calls from the United Nations Security Council. Western nations, particularly the US, have raised serious concerns regarding Iran's nuclear ambition. They have been worried that the Middle East nation might use its nuclear technology to build weapons of mass destruction. In response to the call from the international community to stop its nuclear project, the Iranian government insisted that it had the right to develop nuclear technology for peaceful purposes. According to Iran, it would be using its nuclear technology to boost its energy resources and meet its rising energy needs.
It must be noted that the US is currently the largest partner of Malaysia in global trade. The two countries launched their free trade negotiations last June 2006. But Malaysian Prime Minister Abdullah Badawi said that his country would not bow down to pressure from the US.
Tom Lantos, the current Chairman of the US House of Representatives Foreign Affairs Committee, raised some concerns regarding global trade between Iran and Malaysia. It must be noted that both the US and Malaysia are scheduled to hold the fifth round of their free trade negotiations before the end of this month. But Malaysian officials threatened that they would not allow their country's economic ties with Iran to impede the progress of its trade talks with the US.
According to the Malaysian prime minister, his country rejected the pressure inflicted by the US. He added that political issues should not be mixed with global trade matters. It must be noted that both Malaysia and the US are currently under pressure to close a global trade pact since the fast-tract trade authority of President George W. Bush is due to end in July.
Source :
http://www.tbc-world.com |
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