VZCZCXRO6062
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #1648 3310157
ZNR UUUUU ZZH
R 270157Z NOV 07
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC 0292
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHRC/USDA FAS WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS KUALA LUMPUR 001648 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EEB/TPP/ABT AND EAP/MTS 
DEPT PASS USTR FOR B. WEISEL, D. BELL, L. O'CONNOR 
USDOC FOR JENNIFER BAKER 
USDA FAS FOR ITP/FSTSD, CMP/MOS/EMO, CMP/HTP, ICD 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR MY
SUBJECT: IMPORT SAFETY - MALAYSIA WELCOMES DIALOGUE WITH THE U.S. 
 
REF: A) STATE 114788 B) 2005 KUALA LUMPUR 3640 
 
¶1. Summary: Malaysia is interested in expanding contacts with the 
United States on import safety issues.  Malaysian trade officials 
have been following recent USG efforts to address import safety, and 
they support increased dialogue with the U.S. to preserve and 
enhance Malaysia's strong trade links with the U.S. (see action 
request in paragraph 4).  Malaysia's principal manufacturer's 
association seeks USG assistance in organizing a seminar in early 
2008 to better inform Malaysian industry on U.S. import safety 
procedures.  This seminar would complement a pending review of 
Malaysia's food safety system (stemming from a long-standing 
Malaysian government request) being arranged by Embassy's Foreign 
Agricultural Service office.  End summary. 
 
¶2. Econoff recently raised ref A demarche with Tay Lee Looi, 
Director, Office of Economic and Trade Relations in the Ministry of 
International Trade and Industry (MITI). Tay told econoff that MITI 
was interested in a closer dialogue with the U.S. on product safety, 
noting that she already was closely following the activity of the 
U.S. Interagency Working Group on Import Safety.  With the U.S. as 
its number one export market, Malaysia is concerned about any 
policies that might have a negative impact on such trade.  Tay noted 
that Malaysia also is concerned that its positive reputation in the 
U.S. as a source of imports not be tainted by the recent attention 
paid to the problem of Chinese imports to the U.S. 
 
¶3. In addition to its concerns as an exporter to the U.S., Malaysia 
is likewise a large importer from China. China is Malaysia's fourth 
largest trading partner, with two-way trade in 2006 valued at around 
USD 28 billion.  Tay told econoff that Malaysia would like to expand 
collaboration with the U.S. regarding best practices to protect 
consumers from defective products.  Malaysia's vulnerability to 
defective Chinese imports was widely publicized in October when the 
Malaysian Association of Standards Users announced the results of a 
survey of Chinese-made toys purchased at a variety of Malaysian 
retailers.  Using U.S.-made lead detection equipment, the 
association detected that 16 out of 24 toys tested above acceptable 
lead limits as set by the U.S. 
 
¶4. Action Request: The Federation of Malaysian Manufacturers (FMM), 
Malaysia's largest manufacturers' association, is organizing a 
seminar on import safety issues in early 2008, and has asked Embassy 
for assistance in identifying appropriate U.S. experts, both from 
the government and the private sector, who may be interested in 
participating.  The seminar's main objective would be to educate 
Malaysian companies on U.S. safety and quality requirements and 
procedures for imports. Embassy supports FMM's request as a means to 
expand our dialogue on these issues, and we have suggested that the 
event also include discussion of Malaysia's current practices. 
MITI's Tay told us her ministry would also support the event. 
Embassy requests Washington's assistance, both regarding suggested 
speakers as well as suggested topics to include in the event. 
 
¶5. A seminar on the safety of non-food imports would complement 
current Embassy efforts to improve U.S.-Malaysia cooperation on the 
safety of food imports.  Malaysia faces similar issues as the U.S. 
regarding the safety of food imports from China.  In September the 
Ministry of Health's Food Safety and Quality Division (FSQD) 
announced that it had placed 14 Chinese exporters on a watch-list 
after their food shipments had been found to be tainted with high 
levels of preservatives, pesticides and heavy metals. 
 
¶6. At the request of the FSQD (see ref B), Embassy's Foreign 
Agricultural Service Office is arranging a review of FSQD that 
initially would involve a visit by USDA consultants to assess 
Malaysia's current food safety system.  The subsequent USDA analysis 
would form the basis for strategies to improve Malaysia's system, 
which would be implemented in a follow-up visit by U.S. food safety 
experts.  Embassy FAS office anticipates the review taking place in 
FY 2008 pending the availability of funding. 
 
¶7. Key objectives of the proposed FSQD review are to 1) increase 
Malaysia's understanding of the WTO rules on sanitary and 
phyto-sanitary (SPS) measures, and reduce the number of such 
measures on U.S. exports to Malaysia; 2) encourage Malaysia's 
adoption of internationally consistent food safety and plant and 
animal health measures set by CODEX, IPPC and OIE; 3) increase 
Malaysia's understanding of U.S. inspection systems and its 
willingness to accept products inspected under those systems; 4) 
develop a written analysis of Malaysia's current food safety 
policies, procedures and regulations with recommendations to bring 
them into compliance with international norms; and 5) expand U.S. 
exports to Malaysia. 
 
Keith