Malaysian manufacturers are expected to gain greater access to key US markets should a Free Trade Agreement (FTA) be inked, said International Trade and Industry Deputy Minister Husni Mohamad Hanadziah.

A FTA would allow the eight key industries to avoid paying an estimated RM714.6 million in import duty, Husni told Parliament during question time today.

"Malaysia will have a better competitive edge compared to countries who don't have a FTA with the US," said Husni in reply to a written question by Lim Kit Siang (DAP - Ipoh Timur).

He said the agreement also seeks US cooperation in financing and lending expertise in areas of upgrading customs procedure, intellectual property rights enforcement and e-commerce.

The agreement also aims to make Malaysia an attractive investment destination for US companies in a bid to inject foreign capital and technology into the country.

Husni added that the Cabinet would have the final say on the FTA and that it has been regularly updated on the matter.

Lim's request shot down

"Malaysia would ensure that nation's interest would be preserved in the FTA through allocations that allow flexibility for the government to implement policies and methods to achieve development and (improve) socio-economic (status)," said Husni.

Unsatisfied, Lim called on for a Parliamentary Select Committee (PSC) to monitor the on-going trade talks, which was shot down by Husni.

"We have the country's stake-holders sitting in every trade talk with the Americans. Bank Negara and the Securities Commission have been involved, so are industry leaders," said Husni.

Thus far, Malaysian and US negotiators have convened twice since July to discuss the FTA and three more meetings are scheduled over the next four months.

In 2005, the US was Malaysia's largest trading partner, accounting for 16.6 percent of Malaysia's global trade and is US 10th largest trading partner.