Portman made the announcement on Capitol Hill and was joined by Malaysia’s Minister of Trade Rafidah Aziz and a bipartisan group of leaders in Congress. The negotiations will begin after the expiration of a 90-day consultation period with the US Congress.

"Malaysia has been at the forefront of the economic dynamism transforming Asia in recent years," Portman observed.

He added that:

"It already is our tenth largest trading partner, with $44 billion in two-way trade in 2005. Combined with a new trade opening agreement, Malaysia’s rapidly growing economy will help generate meaningful export opportunities for our workers, service providers, and farmers

"This FTA would be the third we are negotiating in the economically vibrant and strategically important Southeast Asia region and will advance the President’s Enterprise for ASEAN Initiative."

Removing trade and investment barriers between the two nations will improve market access, enhance competitiveness and increase prosperity for both countries, Portman added.

The United States is Malaysia’s largest trading partner and the largest foreign investor in Malaysia. US exports to Malaysia totaled $10.5 billion in 2005, with top export categories including electrical machinery, machinery, optic and medical instruments, aircraft, and plastic. The largest categories of imports from Malaysia were electrical machinery, machinery, furniture and bedding, rubber, and optic and medical instruments.

Malaysia is also considered by the US as a valuable partner in the ongoing global trade negotiations, commonly known as the WTO Doha Development Agenda.