Malaysia agrees to talk trade

New Zealand and Malaysia are to begin talks on a bilateral free trade agreement as soon as possible.

Prime Minister Helen Clark made the announcement with Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi in Wellington yesterday.

She said recent study into a potential agreement showed advantages for both countries not only for trade but in areas such as tourism, education, investment and collaboration in science and technology.

The Malaysian leader, who met Cabinet with five of his ministers, said he hoped negotiations would take no longer than a year.

"I believe this country is one that regards agriculture as an important sector with a growth potential and it is the same for us."

Badawi said biotechnology was important for growth in agriculture and New Zealand had technology and experience which interested Malaysia.

New Zealand's major agricultural exporters have welcomed the possibility of a free trade agreement, saying it would offer benefits to farmers by deepening a growing trade and economic relationship.

Malaysia is the biggest market for New Zealand dairy products in South-east Asia, with milk products representing half of all exports to the country. Sheepmeat, beef and wool exports were worth $78 million last year.

Clark also announced the Malaysian capital of Kuala Lumpur would be the location for a fourth offshore education counsellor.

New Zealand already has counsellors in Beijing, Washington and Brussels.

Kuala Lumpur had been chosen because of the "length, breadth and depth of our education relationship with Malaysia and because we believe Malaysia is a good regional base from which to project out".

Badawi was first elected to the Malaysian parliament in 1978 and has held the education, defence and foreign affairs portfolios. He became deputy Prime Minister and the Minister of Home affairs in 1999 before becoming Prime Minister in October 2003.

Trade offs

* Malaysia is New Zealand's 10th largest bilateral trading partner.
* Trade with the nation of 23 million people is worth $1 billion.
* New Zealand is Malaysia's 26th largest trading partner with trade worth $1.12 billion.
* Malaysian-New Zealand trade grew at an annual rate of 3.3 per cent from 1994 to 2004.
* New Zealand and Malaysia are to begin talks on a bilateral free trade agreement as soon as possible.

- NZPA, staff reporter