KUALA LUMPUR, Aug 30 (Bernama) -- The decision on agriculture, made by theWorld Trade Organization's (WTO) General Council (GC) last month, wouldhelp address the high tariffs imposed on Malaysia's agricultural products,especially palm oil.

"The decision calls for countries with higher tariffs to undertake greaterreductions and the reduction of all trade distorting support," saidInternational Trade and Industry Minister Datuk Seri Rafidah Aziz Monday.

Countries which impose very high bound rates on palm oil are India at 300percent, Nigeria (230 percent), Colombia (227 percent), Thailand (143percent), Kenya (100 percent) and Pakistan (100 percent).

The GC decision in agriculture had taken into account Malaysia's concernover market access, export subsidies and domestic support, Rafidah said ata seminar on WTO here.

The GC, in its meeting in Geneva on July 27-31, 2004, reached consensus onseveral issues, including on frameworks for establishing modalities inagriculture and non-agriculture negotiations.

The modalities for agriculture would be based on the principles andspecific decisions to eliminate agricultural export subsidies, subject toan end date to be negotiated further.

In addition, it included decisions to substantially cut domestic supportand to progressively slash tariff with deeper cuts for higher tariffs.

As for the non-agriculture sector, she said the framework called forambitious cut or elimination from the bound tariff rates.

"This will help to bring down significantly some of the high tariffs thatwe encountered in our export markets, particularly for electrical andelectronic products (E&E)," said Rafidah.

Countries with high tariffs for E&E products include Malta at 50 percent,Morocco (40 percent), Brazil (35 percent), Colombia (35 percent), Uruguay(35 percent) and Argentina (34 percent).

On another note, she said Malaysia needs to devise a strategy that wouldencourage partnership with foreign service providers.

The presence of foreign service providers could contribute towardsenhancing the capacity of the domestic services sector, particularly inthe field of technology, skills and export potential.

"Expanding the scope and coverage of our services commitments under theWTO could help make Malaysia a more attractive investment destination forforeign direct investments in the services sector," she said.

Rafidah disclosed that Malaysia had submitted requests for market openingin services sector in 45 WTO-member countries while 16 countries havesimilarly submitted requests to Malaysia.

-- BERNAMA