PROPOSED ASEAN PARTICIPATION IN MULTI-CHIP INTEGRATED

UNCLAS KUALA LUMPUR 000149 SIPDIS SIPDIS STATE PASS USTR FOR BARBARA WEISEL AND DOUGLAS BELL GENEVA FOR USTR E.O. 12958: N/A TAGS: ETRD EINV EIND MY SUBJECT: PROPOSED ASEAN PARTICIPATION IN MULTI-CHIP INTEGRATED CIRCUITS (MCP) AGREEMENT REF: BELL-MATTHEWS 2/29/08 EMAIL MESSAGE ¶1. Econ Counselor and econoff discussed ref message on March 4 with ¶P. Ravidran, Senior Director, Office of ASEAN Economic Cooperation, Ministry of International Trade and Industry (MITI). We delivered a copy of a letter from Assistant USTR Barbara Weisel to Ravidran regarding the March 14 meeting of the U.S.-ASEAN senior economic dialogue in Siem Riep, during which the ASEAN-U.S. TIFA workplan will be discussed. We noted in particular the U.S. proposal to discuss the participation of ASEAN countries in the multilateral Multi-Chip Integrated Circuits (MCP) Agreement. ¶2. Ravidran told us that Malaysia was interested in the proposal, and that relevant industry had expressed no objections provided the agreement covered MCPs classified under customs HS heading 8542 only (and not the wider range of products that had been erroneously listed in a document issued by the ASEAN Secretariat). However, the Malaysian cabinet had not yet determined whether Malaysia should formally pursue MCP participation. Given the March 8 general elections and the subsequent time necessary to install a new cabinet, Malaysia would only be able to provide an informal approval of the proposal at the March 14 U.S.-ASEAN meeting in Siem Riep. ¶3. Regarding further potential topics for the March 14 meeting, Ravidran noted that Malaysia wanted to discuss ways in which the TIFA Business Roundtable could be energized. He said Malaysia would also seek further progress on implementing the ASEAN single window for customs clearance, and noted that Malaysia is on track to implement its domestic single window for customs clearance by May. Malaysia is also interested in ways in which the U.S. and ASEAN could cooperate to assist ASEAN SMEs, which he said are feeling the squeeze from increased competition from China. Finally, he suggested that ASEAN members would benefit from capacity building from the United States on harmonization of rules of origin, which he said are particularly divergent among ASEAN members as a growing number of FTAs are signed and thus pose a significant impediment to trade. KEITH