| Australia malaysia consider free trade pact Original Source Link: (May no longer be active) http://www.bloomberg.com/apps/news?pid=10000081&sid=aJYGCExCIPJU&refer=australiahttp://www.bloomberg.com/apps/news?pid=10000081&sid=aJYGCExCIPJU&refer=australia
Australia, Malaysia to Consider a Free-Trade Pact (Update2) April 7 (Bloomberg) -- Australia and Malaysia agreed to consider a free-trade agreement, Australian Prime Minister John Howard said during a visit by Malaysian Prime Minister Abdullah Ahmad Badawi.
Abdullah, the first Malaysian leader to visit Australia in 21 years, is aiming to build political ties and boost trade worth $7.4 billion a year. Relations between the two countries were strained during the 22-year rule of Mahathir Mohamad, Abdullah's predecessor.
``The agreement will build on the already substantial economic relationship between the two countries,'' Howard told reporters in Canberra.
Trade in goods and services between Malaysia and Australia rose 21 percent in 2004, making Malaysia Australia's ninth- biggest trading partner. Malaysia sells crude oil, electronic components and computers to Australia and taps Australia for goods including sugar, wheat and dairy products.
Australia has free-trade agreements with Thailand, Singapore and the U.S. The fifth-biggest economy in the Asia-Pacific region is also mulling trade agreements with China, Japan and Indonesia.
Indonesia's President Susilo Bambang Yudhoyono visited Australia earlier this week and signed a security and trade accord. It was the first visit by a head of state from Southeast Asia's biggest economy since 2001.
ASEAN Membership
Howard and Abdullah committed to ``build on its co- operation'' fighting terrorism and money laundering.
``I'm particularly happy we have decided to commence negotiations on a free-trade agreement,'' Abdullah told reporters in Canberra. ``I believe both of us know for a fact our bilateral relations have been very strong in recent years, despite some problems here and there.''
Abdullah told the Australian Broadcasting Corp. this month that Australia wasn't ``centering'' on Asian relationships and that its foreign policy had ``more concern'' with the U.S.
Abdullah declined to say if Australia would be among the nations attending a summit this year to be held by the Association of Southeast Asian Nations.
Australia wants to join ASEAN and attended its summit in November as an observer. Malaysia is one of the 10 members of ASEAN, which has a population of 500 million and combined gross domestic product of $737 billion. The 10 members are Indonesia, Thailand, Malaysia, Singapore, Brunei, the Philippines, Cambodia, Laos, Myanmar and Vietnam.
``We haven't decided the members yet and there are many things that need to be discussed,'' Abdullah said.
Malaysian leader Mahathir made only one official visit to Australia during his 22 years in power, a trip that took place in 1984. In 1993, then Australian Prime Minister Paul Keating labeled Mahathir ``recalcitrant'' for failing to attend the first meeting of the now 21-member Asia Pacific Economic Cooperation grouping in Seattle.
More than a decade later, Mahathir reiterated that, in his view, Australia had ``nothing'' to offer Asia.
Last Updated: April 7, 2005 00:13 EDT
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