The European Union (EU) is ready for talks on the Free Trade Agreement (FTA) with Malaysia, says Ambassador and Head of Delegation of the European Union (EU) to Malaysia, Vincent Piket.

He said the EU wished to negotiate on all products and sectors, including those which are sensitive within it like agriculture, fisheries along with certain segments of the electronics sector and automotives.

"We hope Malaysia will be prepared to be as open-minded in dicussions on areas like services and government procurement.

"Such areas are sensitive here.But appropriate ways of accomodating such sensitivites can be found as part of the overall negotiation package," he said at the opening of the Second Malaysia-Europe Trade and Investment Forum on EUMCCI Special Focus on Services Sector in Kuala Lumpur.

The event, jointly organised jointly by the EU and EU Malaysia Chamber of Commerce (EUMCCI), was officiated by Energy, Green Technology and Water Minister Peter Chin Fah Kui.

Also present was EUMCCI chairman David Jones.

Piket said trade and investment are crucial to global recovery and resuming economic growth.

However, he said in spite of the benefits, trade is often an extremely contentious political issue, both domestically and between governments.

"The challenge for all policy makers in the area today is clear, coming at a time when trade and globalisation is seen by many, as the very things that contributed to the economic crisis.

"In this respect, the EU and Malaysia should continue to work together. We need do it at a multilateral level. With the current deadlock in the World Trade Organisation Doha Liberalisation Round, we have to expand bilateral trade," he stated.

He said Malaysia is the EU's second largest trading partner in Asean after Singapore, but clearly ahead of much larger countries like Indonesia, Thailand, the Philippines and Vietnam.

"We cannot afford to sit on our laurels. After all, the economic crisis wiped out about 20 per cent of both the EU and Malaysia's external trade last year.

"Moreover, recent Malaysian Industrial Development Authority (MIDA) figures clearly show that the inward foreign direct investment picture for Malaysia is far from rosy," he pointed.

Piket said the EU had just launched negotiations with Singapore for a bilateral FTA and had agreed with Vietnam to do the same in the very near future.

In the same vein, he said the EU would welcome the opening of FTA negotiations with Malaysia and the objective of this is simple.

"We wish to create new opportunities for businesses on both sides, with companies wanting to sell goods or offering services, enjoying preferential treatment.

"Consumers should also get access to a wide variety of products at better prices," he explained.

For the EU, Piket said Malaysia represents a growing market as well as a crucial link to the greater Asean region.

"European companies, thinking about setting up shop in Asean, will be encouraged by the FTA do so in Malaysia.

"Likewise, it makes good sense for Malaysia to have better and long term preferential access to the EU, the world's largest market.

"The EU, with half a billion largely prosperous consumers, is without doubt, a powerful destination for Malaysian exports," he added.

- Bernama