Australia, Malaysia aim for free trade deal within 12 months (Roundup)

Mar 3, 2011, 8:06 GMT

Sydney - Australia and Malaysia on Thursday agreed to sign a free trade agreement within 12 months and work more closely together in tackling human smuggling in the region.

'We have determined today that we'll conclude this free trade agreement between our two countries within the coming year,' Australian Prime Minister Julia Gillard said.

She spoke at Parliament House in Canberra after meeting Malaysian Prime Minister Najib Razak, who is on his first visit to Australia since taking over the leadership in April 2009.

Najib, who flanked Gillard at a joint press conference, said setting a deadline would help break a deadlock.

'We both agree that it would be useful to set a certain timeline,' he said of negotiations that began in 2005 but have been deadlocked since 2007.

Australia has similar agreements with New Zealand, Singapore, Thailand and the United States and hopes to seal deals with Japan and China as well as Malaysia.

Gillard said Najib had pressed her on expediting talks to liberate trade between their two countries, worth 10.6 billion US dollars last year, and she had 'agreed that that's a good idea.'

She praised Najib for his 'impressive leadership' in combating the people smugglers who traffic mostly Middle Eastern asylum seekers down the Malay Peninsula and on to Indonesia, where they cross by boat to Australia.

There are currently more than 5,000 asylum seekers in detention in Australia.

To coincide with Najib's visit, Malaysia announced that alleged people-smuggling mastermind Sayed Omeid would be extradited to face charges in Australia. The 47-year-old Iraqi citizen was arrested in Malaysia in September.

Najib resisted Gillard's plea that he endorse her proposal for a regional processing centre for asylum seekers to be set up in East Timor.

The idea has gone nowhere since Gillard proposed it, not least because it received a cool reception in Dili and Jakarta.

'This is a regional initiative,' Najib said. '... We need a bit of time to study the Australian proposal, but we will be as positive as we can.'

His reluctance to embrace the proposal came as no surprise to opposition Liberal Party immigration spokesman Scott Morrison.

'This prime minister [Gillard] just can't take a hint. They're just not into this proposal,' Morrison said. '[Former Australian prime minister] Kevin Rudd gets it. The Indonesians get it. The Malaysian prime minister knows it.'

Najib stressed that Malaysia had taken steps to combat people smuggling, including stopping boats from leaving its shores.

'We've amended the Human Trafficking Act in Malaysia, and we've increased the penalties,' he said. 'The penalties are now very severe.

'Secondly, we've also stepped up our interdiction. There have been many instances of people having been interdicted in Malaysia before they move on to Australia. I think that kind of cooperation will continue.'

In 2005, Abdullah Badawi, Najib's predecessor, became the first Malaysian leader to visit Australia in 21 years. Bilateral relations have improved since then.

Gillard visited Malaysia late last year but did not get to see Najib because he was ill.

More than 250,000 Malaysians have attended universities in Australia, with around 20,000 currently enrolled. More than 500,000 Australians visited Malaysia last year, mostly on holiday.

Najib thanked Australia for looking after the welfare of Malaysians affected by floods that hit Queensland at the beginning of the year. More than 200 Malaysians studying in Brisbane were affected, including a group of people who lost all their possessions to the rising waters.

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