Trade and Industry Secretary Manuel Roxas II, who will be part of President Arroyo’s official party, said he would meet with his counterpart, Trade Minister Rafidah Aziz.
Their discussion, Roxas said, would revolve mainly around strengthening bilateral ties with Malaysia. He said there will also be some discussion on the still unresolved National Steel Corp. (NSC) rehabilitation and the request of the Philippines for a deferment of the tariff reduction schedule covering the petrochemical industry under AFTA (ASEAN Free Trade Agreement).
Roxas said he would meet with the Malaysian privatization agency, Danaharta, to discuss the NSC issue.
Malaysian investors in NSC are currently holding off on taking legal action against Filipino creditor banks over the mothballed steel firm.
The Department of Trade and Industry (DTI) is trying to settle the dispute by getting both parties to agree to allow a third party to operate the rapidly deteriorating steel plant facilities. Roxas said, "we hope to obtain their affirmation on the evaluation process."
Likewise, Roxas said, he would brief the Malaysians and update them on the process so far and "obtain reaffirmation of their concurrence already expressed through Mr. (Ibrahim) Bidin."
Bidin is the head of the NSC rehabilitation committee.
Another tricky issue that Roxas plans to discuss with his Malaysian counterpart is the request of the Philippines to defer the removal of tariff barriers on the petrochemical industry as required upon the effectivity of the AFTA in January 2003.
Roxas pointed out that Malaysia had been granted deferment for its own automobile industry.
Philippine and Malaysian trade relations remain strong in spite of some minor irritants. Total trade between the Philippines and Malaysia increased to $2.518 million in 2000 from $2.457 million in 1999. This represents an increase of $61.05 million or 2.48 percent from 1996.
The Philippines has been enjoying a trade surplus for the past three years. Last year, the Philippine trade surplus amounted to $235.4 million.
Malaysia is the country’s 8th largest trading partner.
The Philippines’ top export product to Malaysia is semi-conductor devices.