The U.S. and Malaysia are continuing FTA negotiations despite the fact that they were unable to conclude the talks in time for the agreement to be considered under current trade promotion authority. The discussions stalled in March after the Malaysian cabinet could not agree on a political mandate for its negotiators, but that hurdle has apparently now been cleared. Last week a group of Malaysian officials traveled to Washington, D.C., where press reports indicate the two sides made some progress in the areas of government procurement, services and investment.
It is still unclear, however, when an agreement might be concluded. There is likely less incentive to reach a deal until it is known whether TPA will be renewed. As of now, the prospect of that happening appears shaky barring a breakthrough in the ongoing trade policy negotiations between congressional Democrats and the Bush administration.
