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A free trade agreement between Malaysia and US means that there are no barriers to trade between each other and goods and services are allowed to move freely between countries. However, this FTA has its advantages and disadvantages which will be discussed further.
In 2005, Malaysia had an annual US$23 billion trade surplus with the US. By using FTA, Malaysia might obtain extra market access in the US, but the structural and legal rules by the US Trade Representative might limit the access. For example, according to the “rules of origin” like the “yarn forward rule” makes it difficult for Malaysia to export its textiles to the US even if the tariffs for it are lowered. Interestingly, it is predicted by US’ National Association of Manufacturers that it will be able to double its exports to Malaysia by 2010. This might seem rather one-sided or biased.
Furthermore, it is a well-known fact Malaysia has relatively high tariffs. By establishing an FTA with the US, the tariff......

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Approximate Word Count: 797
Approximate Pages: 4 (250 words per double-spaced page)

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