Reuters
Thursday, January 11, 2007; 10:45 PM

KUALA LUMPUR (Reuters) - The United States and Malaysia need at last two more rounds of talks before they can reach a free-trade deal, a U.S. trade negotiator said on Friday, adding that major challenges still remained to be overcome.

"As we approach the end of this round, there still is work to do and some not-insignificant challenges ahead, but we believe the progress we have made this week has put us within striking distance of concluding this agreement within the next few months...," lead U.S. negotiator Barbara Weisel said.

Weisel, assistant U.S. trade representative for the Asia Pacific, was speaking to reporters in Kuala Lumpur by video link from San Francisco, where the two nations held a fourth round of talks.