Leads and co-chairs of the various working groups met on 1
October 2007 in KualaLumpur to map a way forward for the
negotiations. This followed a meeting between
Australia's lead negotiator and Malaysia's new lead
negotiator on 4 June 2007: a number of Malaysia's key
negotiators had changed since the last full negotiating
session. Both sides noted the considerable work undertaken in
the negotiations with the development of draft chapter text and
exchange of initial tariff offers. It was acknowledged there
had been slippage in the negotiations due in part to changes in
Malaysia's personnel and a heavy trade agenda.

Australia and Malaysia are also engaged in the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
negotiations. Both sides agreed it was important to ensure
consistency and coherence between the regional (AANZFTA) and the
bilateral (MAFTA) FTAs as a number of issues crossed both
negotiations: e.g. rules of origin and customs procedures. It
was accepted that MAFTA would need to add value to the regional
FTA.

Inter-sessional meetings will be held as required and we will
hold a further preparatory meeting in early 2008, leading to a full
round by mid-2008.