Free trade talks between the United States and Malaysia may be scrapped if they fail to reach an agreement "by this summer," mainly on a dispute over the way Malaysian state contracts are awarded, a U.S. official warned Thursday.
The tussle over the so-called "procurement policy" was left out of negotiations this week as the Malaysian government wanted more time to think about it, said Barbara Weisel, a senior U.S. negotiator leading free trade talks.
The policy refers to state contracts, which are mostly awarded to Malaysia's ethnic Malay majority under an affirmative action program to give them an advantage in competing with the …
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