Indo-Malay business pact talks from Jan

NEW DELHI: India and Malaysia may begin negotiations for a comprehensive economic cooperation agreement (CECA) from January, 2008. Both sides have adopted the joint study group (JSG) report which has recommended establishing a CECA, saying it was feasible and would be mutually beneficial in expanding bilateral economic linkages.

At the moment, India has a CECA only with Singapore.The CECA is an all-encompassing free trade agreement covering trade in goods, services and investment.

The report was adopted in Kuala Lumpur on August 11 by commerce secretary Gopal K Pillai and his Malaysian counterpart Abdul Rahman Mamat hi. The report estimates bilateral trade is likely to reach $16 billion by 2012 from the current level of $6.5 billion. The report has identified areas where engagement could be enhanced.

India-Malaysia two-way trade has been characterised by wide fluctuations in imports and exports over the years and has been confined to a narrow range of products.

The report also lists areas for trade in services where there is potential for higher participation, besides suggesting trade facilitation measures as well as initiatives for the enhancement of two-way investment flows and cooperation in other areas. In services, the JSG has outlined that trade can be expanded though strengthening cooperation and collaboration activities in medicine, healthcare & diagnostic, advertising, audio-visual, financial, tourism & travel, transport and accounting & taxation services.

Besides, the focus of the agreement would also be on harmonisation of standards and mutual recognition of qualifications of professional service providers.For boosting investment, the report recommends the agreement should cover three main areas of investment: liberalisation, promotion and facilitation.