India, Malaysia ink landmark trade pact

Kuala Lumpur (PTI) India and Malaysia on Friday
signed a landmark pact that paves the way for freer flow of
trade in goods and services, besides enhanced investment and
economic cooperation between the two countries.
The Comprehensive Economic Cooperation Agreement (CECA)
was signed by Indian Commerce Minister Anand Sharma and his
Malaysian counterpart Mustapa Mohamed and witnessed by Prime
Minister Najib Razak and several leading captains of industry
from both sides.
"The CECA will usher in a new era of much deeper economic
cooperation. Indian Premier Manmohan Singh is very supportive
of this and a very good friend of Malaysia," Najib said while
standing behind the two seated ministers after the pact was
inked.
The CECA marks a new era in bilateral ties, with both the
ministers calling the agreement a vehicle that would serve to
enhance trade and investment flows and encourage freer
movement of goods, services and professionals between India
and Malaysia.
India was Malaysia's 13th largest trading partner in
2010, with exports amounting to USD 6.5 billion and imports at
USD 2.4 billion.
Indian investments in Malaysia were valued at USD 15.9
million, mostly in scientific and measuring equipment,
fabricated metal products, furniture and fixtures.
This is the second trade pact India has signed in the
past three days.
Sharma inked a trade pact with Japan on Wednesday before
flying in here last night.
The two countries envisage that with the CECA in place
from July 1, 2011, bilateral trade will accelerate and touch
at least USD 15 billion by 2015.
"The agreement is an ambitious one encompassing services,
investment and trade and opening up various sectors for
investment opportunities," Sharma said at a press conference
after inking the deal.
"The modest trade bilateral target of USD 15 billion by
2015 is doable and can happen sooner by the signing of CECA,"
Sharma said.
He said Indian business houses have invested in the
petroleum, synthetics, railways and IT sectors in Malaysia and
the two countries were also working on projects in third
countries.
He stressed that Asia was today the hub of economic
activity and noted that the integration of Asian economies
would help in realising developmental objectives.
The Malaysian trade minister said there were two factors
which would push the CECA to greater heights -- the direct
impact of tariff reductions and the excitement and feel good
factor between the two countries.
The two ministers noted that signing of the deal would
also facilitate the movement of skilled professionals.
Malaysia has also agreed to higher FDI by Indian
companies in the construction services and IT sectors.
Mustapa said the negotiators had helped produce an
agreement that had nine times more on the positive list than
the negative list.
The Malaysian minister emphasised that India was a very
important country for Malaysian businessmen, with trade
between the two going up to USD 9 billion this year.
He said the impact of the CECA would extend beyond just
trade and investment, projecting a huge increase in tourist
arrivals.