The government will commence talks with Malaysia from January for a bilateral comprehensive economic cooperation agreement (CECA) to enhance trade in goods, services and investments. This is part of the government?s ?look east policy? despite the dispute with Malaysia on tariffs on palm oil imports, which is delaying an FTA with the Asean.
Significantly, China is already ahead in this aspect as it has inked an FTA with Asean (of which Malaysia is a member) and is trying to ink a pact on investment and services by 2010.
Inaugurating a seminar on Malaysia-India business opportunities, commerce and industry minister Kamal Nath said, ?I am confident that this agreement (CECA with Malaysia) would take our bilateral relations to newer heights and would contribute to the growth of our economies.?
He said the CECA with Singapore (also an Asean member) was listed for the Cabinet?s approval, which will meet this Thursday. India and Singapore had signed the CECA in June 2005. The two countries had reviewed the pact in October this year.
To take the trade and investment relations forward, India and Malaysia had set up a joint study group, which was for establishing the CECA, Nath said. He added the study group?s estimate of catapulting bilateral trade to $16 billion by 2012 was achievable.
Malaysian minister of international trade and industry Rafidah Aziz, who is here on a week-long visit, said Malaysia and India had continued to deepen the relationship and the scope of cooperation has expanded to cover many areas of trade, investment, education and tourism.
The bilateral trade between India and Malaysia during 2002-03 was $2.2 billion and it increased three-fold during 2006-07 to $6.6 billion. During 2006-07, India?s exports to Malaysia stood at $1.3 billion and imports from Malaysia at $5.3 billion.
India?s major exports to Malaysia include cathodes and sections of cathodes, meat and meat preparations, petroleum oils, onions and shallots, chemicals, cereals, yarn, garments, iron and steel, while major imports include petroleum oils, palm oil, electronic goods, wood manufactures, chemicals and yarn.