M'SIA, INDIA IN THIRD ROUND OF CECA NEGOTIATIONS

KUALA LUMPUR, March 29 (Bernama) -- Malaysia and India are on track towards
formalising a bilateral trade liberalisation pact under the Malaysia-India
Comprehensive Economic Cooperation Agreement (CECA).

The third round of the CECA negotiations will be held from March 29-31 in
Kuala Lumpur.

The CECA is expected to further boost trade and investment between the two
countries. India, was Malaysia's 12th largest trading partner, last year.

Trade between the two countries peaked in 2008 at US$10.52 billion but fell
to US$7.06 billion last year on the back of the global economic downturn.

"I have no doubt that we will see trade between both countries return to,
and then rapidly exceed the 2008 figure," said International Trade and Industry
Minister, Mustapa Mohamed in a statement here Monday.

Mustapa said the ministry was encouraged by the level of interest within the
corporate sectors in India and Malaysia, and looked forward to greater
investment flows from India.

"I would like to see existing and new Indian companies expand their
operations in Malaysia, particularly small and medium enterprises," he added.

Determined to ensure that negotiations are successful, Mustapa met
with his Indian counterpart, Union Commerce and Industry Minister Anand Sharma,
in India recently to review progress on the CECA.

"Sharma and I have now agreed on a process which should ensure we
meet this challenging deadline. The breadth of the agreement, covering services
and investments, reflects the level of our ambition which I have characterised
as 'Asean Plus'," Mustapa explained.

Malaysia through its engagement in Asean, signed the Asean-India Trade in
Goods Agreement last October. The agreement was effective, Jan 1 this
year. Malaysia has already ratified the India-Asean Free Trade Agreement,
which
will gradually remove tariffs on 70 per cent of traded items.

The CECA seeks to secure a higher level of commitment to trade relations
between Malaysia and India.

-- BERNAMA



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