Malaysia has threatened to withdraw from ongoing free trade talks with the United States is it is pressurized to scrap an energy development deal with Iran. Recently, Malaysia had struck a $16 billion deal to develop Iranian Gas fields and build liquefied gas plants in Iran. A US legislator had raised serious concern over the deal and asked the government to put pressure on Malaysia to break the deal.
At present the U.S. is Malaysia’s biggest trading partner and both the countries are involved in negotiations for free trade since June last year, though no major breakthrough has been made so far in the talks. In the meanwhile, Malaysia’s prime minister, Abdullah Badawi, has resolutely reacted that Malaysia will bow to the pressure from the White House.
The U.S. is trying hard to pressurize Iran to end its nuclear program which Washington believes is aimed at developing nuclear weapons. The Bush administration has also imposed sanction on the country and has taken several steps to isolate the country economically. However, at present economic sanctions envisaged by the US does not seem to be working well in favor of America. Recently, Royal Dutch Shell has confirmed an energy deal with Iran and now Malaysia is giving Washington a tough time.
Another round of negotiation for free trade is scheduled to be held this month and Malaysia had already warned that it would not allow its commercial deal with Iran to interrupt negotiations. Both sides are involved in vigorous negotiation to conclude free trade deal as Bush’s special power to negotiate a trade deal expires in June.
