The free-trade charade

First Published: 7:00am, Jul 13, 2013 Last Updated: 7:33am, Jul 13, 2013 Opinion by Joseph Stiglitz

It now seems clear that the negotiations to create a free-trade area are not about establishing a true free-trade system. THOUGH nothing has come of the World Trade Organisations Doha Development Round of global trade negotiations since they were launched almost a dozen years ago, another round of talks is in the works. But this time, the negotiations will not be held on a global, multilateral basis; rather, two huge regional agreements one transpacific and the other transatlantic are to be negotiated. Are the coming talks likely to be more successful? The Doha Round was torpedoed by the US' refusal to eliminate agricultural subsidies a sine qua non for any true development round, given that 70% of those in the developing world depend on agriculture directly or indirectly.

The US position was truly breathtaking, given that the WTO had already judged that Americas cotton subsidies paid to fewer than 25,000 rich farmers were illegal. Americas response was to bribe Brazil, which had brought the complaint, not to pursue the matter further, leaving in the lurch millions of poor cotton farmers in Sub-Saharan Africa and India, who suffer from depressed prices because of the US' largesse to its wealthy farmers. Given this recent history, it now seems clear that the negotiations to create a free-trade area between the US and Europe, and another between the US and much of the Pacific (except for China), are not about establishing a true free-trade system. Instead, the goal is a managed trade regime managed, that is, to serve the special interests that have long dominated trade policy in the West. There are a few basic principles that those entering the discussions will, one hopes, take to heart. First, any trade agreement has to be symmetrical. If, as part of the "Trans-Pacific Partnership" (TPP), the US demands that Japan eliminates its rice subsidies, the US should, in turn, offer to eliminate its production (and water) subsidies, not just on rice (which is relatively unimportant in the US) but on other agricultural commodities as well. Second, no trade agreement should put commercial interests ahead of broader national interests, especially when non-trade-related issues like financial regulation and intellectual property are at stake. The US trade agreement with Chile, for example, impedes Chiles use of capital controls even though the International Monetary Fund now recognises that capital controls can be an important instrument of macro-prudential policy. Other trade agreements have insisted on financial liberalisation and deregulation as well, even though the 2008 crisis should have taught us that the absence of good regulation can jeopardise economic prosperity. The US pharmaceutical industry, which wields considerable clout with the office of the US Trade Representative (USTR), has succeeded in foisting on other countries an unbalanced intellectualproperty regime, which, designed to fight generic drugs, puts profit ahead of saving lives.

Even the US Supreme Court has now said that the US Patent Office went too far in granting patents on genes. Finally, there must be a commitment to transparency. But those engaging in these trade negotiations should be forewarned: the US is committed to a lack of Transparency. The USTRs office has been reluctant to reveal its negotiating position even to members of the US Congress; on the basis of what has been leaked, one can understand why. The USTRs office is backtracking on principles for example, access to generic medicines that Congress had inserted into earlier trade agreements, like that with Peru. In the case of the TPP, there is a further concern. Asia has developed an efficient supply chain, with goods flowing easily from one country to another in the process of producing finished goods. But the TPP could interfere with that if China remains outside of it. With formal tariffs already so low, negotiators will focus largely on non-tariff barriers such as regulatory barriers. But the USTRs office, representing corporate interests, will almost surely push for the lowest common standard, levelling downward rather than upward. For example, many countries have tax and regulatory provisions that discourage large automobiles not because they are trying to discriminate against US goods, but because they worry about pollution and energy efficiency. The more general point, alluded to earlier, is that trade agreements typically put commercial interests ahead of other values the right to a healthy life and protection of the environment, to name just two. France, for example, wants a "cultural exception" in trade agreements that would allow it to continue to support its films from which the whole world benefits. This and other broader values should be non-negotiable. Indeed, the irony is that the social benefits of such subsidies are enormous, while the costs are negligible. Does anyone really believe that a French art film represents a serious threat to a Hollywood summer blockbuster? Yet Hollywoods greed knows no limit, and Americas trade negotiators take no prisoners. And thats precisely why such items should be taken off the table before negotiations begin.

Otherwise, arms will be twisted, and there is a real risk that an agreement will sacrifice basic values to commercial interests. If negotiators created a genuine free-trade regime that put the public interest first, with the views of ordinary citizens given at least as much weight as those of corporate lobbyists, I might be optimistic that what would emerge would strengthen the economy and improve social well-being. The reality, however, is that we have a managed trade regime that puts corporate interests first, and a process of negotiations that is undemocratic and non-transparent. The likelihood that what emerges from the coming talks will serve ordinary Americans interests is low; the outlook for ordinary citizens in other countries is even bleaker.

Joseph E Stiglitz, a Nobel laureate in economics, is university professor at Columbia University. This article was first published in The Edge Malaysia July 8-14 issue.

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Putrajaya says cant make TPPA omelette without breaking eggs

JUL Y 13, 2013

PETALING JAYA, July 13 Putrajaya today sought to defend plans to sign the criticised Trans-Pacific Partnership Agreement (TPPA) as vital to the nations progress even as it acknowledged the inevitable accidents that will arise from the deal. The opaque agreement has now come under fire from former Prime Minister Tun Dr Mahathir Mohamad, who echoed opposition Pakatan Rakyat lawmakers in lambasting the deal as being of no real benefit to Malaysia despite opening up the country to foreign firms and lawsuits.

Take, for example, the construction of a highway; it is good and we get to travel faster, but there must be accidents, Minister of International Trade and Industry Datuk Seri Mustapa Mohamed(picture) was quoted as saying at a forum in Shah Alam yesterday by the Sinar Harian news portal. What is important is that the highway construction benefits the country, even if there are accidents. But the minister again did not elaborate on what these benefits will be. When asked in Parliament last month to detail what Malaysia stood to gain from the agreement, Mustapa had declined to divulge the cost-benefit analysis that led to the decision in favour of signing. Yesterday, Dr Mahathir joined the growing band of critics in lambasting the TPPA, with the former prime minister singling out Mustapas ministry for the decision to join the secretive pact. I know MITI is already set to agree to the TPP. It will not entertain any counter arguments. It wants to do this secretly. We dont punish people who make agreements detrimental to the interest of this country. So what is there to lose? the nations longestserving prime minister wrote on his blog. Dr Mahathir also labelled the TPPA as another in a long line of lopsided deals that Malaysia kept walking into, further alleging it to be a covert US attempt to help its firms gain access to lucrative federal supply contracts. Look at all the agreements we have entered into and you will find practically none of them favours us, he wrote on blog. Now we want to swallow the American conceived TPP, Trans Pacific Partnership. This is another attempt by America to let their huge corporations penetrate the domestic markets of the small countries, in particular government procurements.

Yesterday, Mustapa also sought to dismiss claims his ministry was being opaque on the deal as simply perception. The perception of some is that we have something to hide, but when I say this, we must realise that nothing is done without consequences. If we want every action to not affect any party at all, that will be impossible, he said in the Sinar Harian report. Pakatan Rakyat lawmakers previously and Dr Mahathir now point out that the TPPA would open up the government to multi-billion ringgit lawsuits from global corporations that the former prime minister said Putrajaya was unlikely to be able to fend off. They will have the best lawyers, lots of them. We will exhaust all our funds to pay our less experienced lawyers. At the end we will lose and pay indemnities and fees running into billions. And we will continue to pay until we comply. And when we comply we will lose more money, Dr Mahathir predicted. The TPPA is a free trade agreement that has been negotiated by the US, Malaysia and nine other nations as part of the larger Trans-Pacific Strategic Economic Partnership since 2010. Critics allege that the agreement has since been co-opted by powerful corporations to allow them to trample over existing consumer, worker and environmental rights in signatory countries. Although it is not definitively known how much if any of the allegations are true, the secretive nature of the negotiations continues to provide a fertile breeding ground for such speculation.

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TPPA good for Malaysia but Putrajaya zips lips on cost benefit
BY SY ED JAY MAL ZAHI ID JUNE 27, 2013UPDAT ED: JUNE 27, 2013 01:36 PM

KUALA LUMPUR, June 26 Malaysia will gain more by being part of the controversial Trans-Pacific Partnership Agreement (TPPA) but the federal government has declined to divulge the cost-benefit analysis it used to back its support of the free trade deal.

International Trade Minister Datuk Seri Mustapa Mohamed (picture) told Parliament today that Putrajayas refusal to disclose its approach was for strategic purposes, which appears to be the same reason behind why details of the negotiations must be kept confidential. Rights and anti-free trade groups have called for more transparency since policies derived from the talks would have huge impacts on consumers. The cost benefit analysis these are details that are strategic (to the negotiations). I think it would be enough for questions to be asked here by MPs and debates and the details in here, Mustapha said in reply to a question from Klang DAP lawmaker Charles Santiago. Santiago had during Question Time suggested that details of the negotiations be tabled in Parliament for debate or presented to a select committee. The Najib administration is facing strong calls by business groups and the opposition to shun the TPPA following inflationary concerns, especially on prices of medicine. Local pro-government business groups, including the conservative Malay Economic Action Council, have also called on Putrajaya to withdraw from the negotiations, arguing

that small local companies would be forced to compete with cash-rich giants when the market opens up under the agreement. Mustapa, however, maintained that the Barisan Nasional (BN) government would not agree to the TPPA if the deal would kill off local companies and push prices of basic goods like medicines up. There are no agreements on medicine patents. The government is firm in ensuring that medicine prices remain affordable, he said. The minister added that Putrajaya can refuse to agree to any provisions deemed hurtful to Malaysian interests and that any agreement under the TPPA must be reached through a consensus. The TPPA has yet to be signed. If signed, it will see free trade carried out between Malaysia, Brunei, Vietnam, New Zealand, Singapore, Australia, Japan, Mexico, Peru, Chile, the US and Canada. Despite the opposition, Putrajaya appears dead set to proceed with the deal with government leaders including Deputy Prime Minister Tan Sri Muhyiddin Yassin openly supporting the move. Mustapa said signing the TPPA would help Malaysian companies expand into new markets and also offer protection against any form of trade barriers as provided under the agreement. Santiago argued that the deal would compromise Malaysias sovereignty, citing how countries like Germany and Australia, under their respective free trade agreements, were punished for implementing policies seen as anti-business.

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Putrajaya told to justify TPPA participation

BY BO O SU-L YN JUL Y 10, 2013UPDAT ED: JULY 13, 2013 10:26 AM

Kelana Jaya MP Wong Chen noted today that the government stood to net only RM3 billion from the proposed free trade agreement. AFP picKUALA LUMPUR, July 10 Pakatan Rakyat (PR) MPs today pressed Putrajaya on the rationale for signing the country up for Trans-Pacific Partnership Agreement (TPPA) that they say brings scant financial benefit but will cause Malaysians to pay more for medicine and open up government to lawsuits from global firms. Kelana Jaya MP Wong Chen noted today that the government stood to net only RM3 billion from the proposed free trade agreement now being negotiated by Malaysia, the US and nine countries, according to US think-tank Peterson Institute for International Economics. Malaysia will gain US$40 billion in exports, according to the US, Wong told reporters at Parliament here today. Its assuming the profit margin is 10 per cent, which is US$4 billion, and assuming companies pay 25 per cent corporate tax, which is US$1 billion gain in terms of tax for the Malaysian government, added the PKR chairman of investment and trade bureau. So for RM3 billion, do you sign an agreement that has a far-reaching impact? he questioned. The cost of medicine will go up. Klang MP Charles Santiago from the DAP said the TPPA was to be signed by the end of the year. He also pointed out that the price of medicine jumped by 20 per cent after the US signed a free trade agreement with Jordan.

Itll be RM136,000 for breast cancer medicine if the TPPA gets through, said Santiago at the same press conference. For the average Malaysian, medication is not possible, he added. If youre poor, youll die. Santiago noted that the TPPAs Investor-to-State Dispute Settlement (ISDS) system would affect Malaysias sovereignty as foreign investors will be allowed to sue the government if public policies are not made in their interest. Australia was sued by Phillip Morris through its FTA (free trade agreement) with Hong Kong, said the opposition lawmaker, referring to the tobacco giant. The ISDS has impact on all levels of government, Santiago added. Local councils can be sued too. Santiago also said that the TPPA would liberalise the water sector and open up water concessions to foreign companies, besides requiring the government to ratify all eight fundamental International Labour Organisation (ILO) conventions. Malaysia has ratified all of the fundamental international labour conventions, except the convention on freedom of association. This has policy and constitutional questions, according to MITI (Ministry of International Trade and Industry), said Santiago, referring to the freedom of association convention. Santiago also complained about the lack of consultation between Putrajaya and stakeholders on the TPPA. MTUC was not consulted. Fomca also said they were not consulted. MTEM and MAC, where this has direct implications on them, were not consulted, he said, referring to the Malaysian Trades Union Congress (MTUC), Federation of Malaysian Consumers Association (Fomca), Malay Economic Action Council (MTEM) and the Malaysian AIDS Council (MAC). Johor Baru MP Tan Sri Shahrir Abdul Samad said last Monday that a parliamentary caucus which is to comprise four Barisan Nasional (BN) and three opposition lawmakers will be set up to discuss the TPPA. - See more at: http://www.themalaymailonline.com/malaysia/article/putrajaya-told-justifytppa-participation#sthash.JBDEStrK.dpuf
Saturday, 13 July 2013 08:38

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Ong: TPPA to please Obama?

Leven Woon | July 10, 2013

An opposition member of parliament claims that the government is rushing through the Trans-Pacific Partnership Free Trade Agreement (TPPA) as it wants the agreement signed before October.

KUALA LUMPUR: The government is bulldozing the United States-led Trans-Pacific Partnership Free Trade Agreement (TPPA) to please US president Barrack Obama, who is scheduled to visit Malaysia in October, an opposition MP charged today. DAPs Serdang MP Ong Kian Ming said the government was trying to seal the controversial agreement by October despite concerns that it would lead to higher price of medicine and erosion of Malaysias sovereignty. It would be detrimental if Malaysia were to prioritise foreign dignitaries over the benefits for Malaysians, he told a press conference at Parliament. It is learnt that the government and the Malaysian Economic Action Council were pushing for the agreement to be signed before October, just in time for the US presidents first visit to Malaysia. Earlier, several opposition MPs held a roundtable discussion with government officials, non-governmental organisations and representatives from the New Zealand, Australia, Canada and United States embassies to get a clearer picture of the TPPA. The four countries are part of the 12 members in the ongoing TPPA negotiations, which once sealed would allow the establishment of an international tribunal to deliberate suits brought by companies from member countries; and gives extension to patented medicine to certain companies. The international tribunal can overrule the decisions made by a countrys court. Govt only gains RM3billion

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Meanwhile, PKRs Kelana Jaya MP Wong Chen noted that Malaysia government would only gain RM3 billion every year after signing the agreement. He said the figure was derived from a report produced by a US think-tank which projected that Malaysias export will rise to US$40 billion if it signed the TPPA. Based on our calculations we expect government revenue to increase only by US$1billion or about RM3 billion. This does not justify the loss incurred from higher cost of medicine, intellectual property and erosion of the nations sovereignty, he said. Meanwhile, DAPs Klang MP Charles Santiago said the TPPA was shrouded with secrecy and was going to be signed without any consultations with stakeholders. The scale of consultation on TPPA, from the level 1 to 10, is 0. In the case of other countries, almost all the industries are represented. And the government had to go back and forth to hold discussions with them after each round of negotiations, he said. On the Parliament caucus on TPPA setup on Monday, he said the government has certainly felt the heat after keeping the public in the dark for so long. In fact, some of Umno contractors have also came out and said that they are unhappy with the TPPA. This is certainly trouble for them, he said.

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How the TPPA will affect Malaysia

Alyaa Azhar | July 13, 2013

The TPPA will have an impact on Malaysia's legal system, environment and education, claims the Malay Economic Action Council (MTEM).

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PETALING JAYA: The Trans-Pacific Partnership Agreement (TPPA) will have an impact on several critical aspects of Malaysian life as a whole, claim the Malay Economic Action Council (MTEM). The association, which consists of 51 Malay economic NGOs, in its booklet has detailed the effects of the TPPA if it is signed, highlighting its impact on the legal system, environment, education and medicines. Malaysia is currently negotiating with 12 other countries to conclude the TPPA, a multilateral trade agreement involving Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States (US), Vietnam and Japan. Legal and Judicial system MTEM claimed that corporations are pushing to have investor-state dispute settlement (ISDS) provisions included in the TPPA. This would allow foreign investors to challenge an action by a TPPA government, even if such action were a law, on the premise that such an action would affect their investment. Such a legal challenge would be made at an international arbitration tribunal outside of Malaysia, the association said. MTEM added that the ISDS empowers foreign corporations to override Malaysias domestic judicial, legal and parliamentary systems. It is to be noted that decisions made at international arbitration tribunals have often seen foreign investors being granted greater rights than those provided to domestic investors. Medicines The US is demanding that TPPA countries agree to a number of intellectual property (IP) measures that will ensure the greatest returns for its corporations, at the expense of the public, according to MTEM. Such measures include lowering the requirements for the patenting of medicines, so that even minor alterations of already existing medicines can be given additional patent protection status. The US is also demanding for patents registered by pharmaceutical firms to be lengthened so that generic manufacturers can be kept out

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of the market and drug prices can be propped up for longer periods of time, said MTEM. It added that the TPPA will also give customs officials greater powers to confiscate legitimate generic medicines based on mere suspicion. Environment MTEM further claimed that the TPPA could also encourage increased export of raw materials which would inspire even more logging, forest clearing and mining, by removing export taxes. Not only would this mean more environmental degradation, there would be less incentive for domestic industries, said MTEM, referring to the countrys furniture industry, which the association said, may not survive if Malaysias export tax on raw logs is removed. Research and education The TPPAs IP protection measures will also impact access to knowledge in the fields of culture, education, research and publication. There is a proposal to extend copyright duration beyond the present 50 years to possibly 120 years after an authors death, which would impact on library digitisation programmes as well as students and the general publics access to their works, stressed MTEM. The TPPA is an agreement that the US, the leading negotiator in the talks, hopes to serve the US role in developing a broader platform for trade liberalisation, particularly throughout the Asia-Pacific region.

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The US hopes that the TPPA would be the most comprehensive regional free trade agreement to eliminate trade barriers and increase opportunities for US trade and investment. The TPPA will also provide the US with an opportunity to establish new rules, such as regulatory coherence, supply chain management, state-owned enterprises and increasing trade opportunities for its own small and medium-sized businesses, claimed MTEM.

See more at: http://www.freemalaysiatoday.com/category/nation/2013/07/13/how-thetppa-will-affect-malaysia/#sthash.1W1Xo9ej.dpuf

Trans Pacific Partnership Agreement will see medicine price hike, MP warns
B Y J EN NI FE R GO MEZ A ND YISW AR EE P AL AN SA MY J UL Y 1 0, 20 13

Signing the Trans-Pacific Partnership Agreement (TPPA) will see an increase in the cost of medicines, an MP said today. This is because the TPPA would limit access to generic medications when intellectual property rights come into play, said Klang MP Charles Santiago. "Currently, it costs RM136,000 for 18 cycles of medicines for a breast cancer patient. This will go up further if TPPA comes into play," he said. Santiago said the average Malaysian will not be able to afford medication and if they are poor and sick, they will be in serious trouble. He cited the example of a similar trade agreement signed between the US and Jordan which saw the cost of medicine increase by 20 to 30 per cent. Other than higher cost of medicines, there is also concern that the government's policy making powers will be curtailed if Malaysia goes ahead with the TPPA.

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"We in Parliament make the law, but that law can be overturned by a two or three member tribunal outside Malaysia and that cannot be brought again before our court of law, so it raises the issue of sovereignty," Santiago said. He added that the Malaysian government was not engaging the stakeholders but instead ongoing negotiations with member countries are kept under wraps. "The level of consultation on a scale of one to 10 is zero. This is the key problem we are facing and also secrecy seems to be the Malaysian government's number one priority. "In more mature economies which are part of the TPPA negotiations, the element of secrecy does not arise," he said. He added that there is a chapter on labour in the TPPA but in Malaysia, the government did not even consult the Malaysian Trades Union Congress (MTUC), the largest labour body, for their input. Santiago was speaking to reporters after a roundtable discussion with nongovernmental organisations and representatives with TPPA member countries, namely Australia, Canada, US, Chile and New Zealand today. He also said that a United Nations Development Programme (UNDP) report revealed that Malaysia would not benefit from trade with the US. Kelana Jaya MP Wong Chen said there was a need to look at the cost benefit analysis and the fiscal impact for the country, if it signs the TPPA. He said US officials had said that Malaysia's exports would total US$40 billion (about RM120 billion) under the TPPA. He said based on the assumption that Malaysian companies would make a 10 per cent net profit on this, it would translate to a gain of RM3 billion yearly to the Malaysian budget, based on a 25 per cent tax rate. "So we need to analyse this RM3 billion gain against the losses in terms of higher pharmaceutical costs, loss of sovereign rights, and our economic model. We want the government to engage us on this most basic level," Wong added. Lembah Pantai MP Nurul Izzah Anwar said while the government had agreed to set up a parliamentary caucus on the TPPA, it was too late as the agreement is slated to be concluded at the APEC in Bali, Indonesia, in October. - July 10, 2013.

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BN and PR to form parlimentary caucus to discuss TPPA

J UL Y 0 8, 20 13

A parliamentary caucus will be set up soon to discuss the issue of the Trans-Pacific Partnership Agreement (TPPA), the Barisan Nasional Backbenchers Club (BNBBC) chairman Tan Sri Shahrir Abdul Samad said. He said the caucus would comprise seven members of Parliament (MPs), both from the government and the opposition, and would be chaired by Jasin MP Datuk Ahmad Hamzah. The first meeting of the caucus is expected to be held middle of this month, he said. "The opposition MPs have also gave their consent to join the caucus, but they have yet to name their candidates," the Johor Baharu MP said. Shahrir said among the objectives of the setting up of the caucus were to open a room for discussion with all stakeholders to ensure that whatever decision made by the government concerning the TPPA would be beneficial to all quarters. "We target to involve all stakeholders in the discussions, including business groups, nongovernmental organisations and various groups that have an interest on TPPA. "They have their own concerns on TPPA, and by engaging all the stakeholders, we can make sure that at the end of the day, whatever the government's decision is, it will take into consideration the views of all parties," he said. TPPA is an agreement similar to the Free Trade Agreement which involves multilateral trade among countries, including the United States, Australia, Brunei, Malaysia, Canada, Chile, Mexico, New Zealand, Peru, Singapore, Vietnam and Japan. - Bernama, July 8, 2013.

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Dr M wants transparency in TPPA talks, says pact is unequal

B Y R IT A JO NG J UL Y 1 3, 20 13

Tun Dr Mahathir Mohamad (pic) wants Putrajaya to come clean on negotiations for the new trade pact, the Trans Pacific Partnership Agreement (TPPA), joining the chorus who say it was unequal and an American attempt to open up domestic markets in small countries. The former prime minister also said the government should ignore the October deadline for the trade talks that now involve 12 Pacific Rim countries, adding China should also be included in the pact. "We talk a lot about transparency. Let us see transparency regarding the TPP negotiations. The October ultimatum should be ignored. And let China be included," the influential leader said in his chedet.cc blog yesterday. An edited version of his blog posting was also published by the Umno-controlled New Straits Times newspaper's online site last night.

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Prime Minister Datuk Seri Najib Razak's government is committed to the talks that began more than two years ago and expected to be wrapped up by the time United States President Barack Obama visits Southeast Asia this October. But many groups have opposed the negotiations and have asked for details of the pact, saying it would lead to increased competition and also price rises for drugs as enforcement of patents would disallow the use of generic drugs. The next round of TPPA talks is scheduled in the Sabah state capital of Kota Kinabalu starting July 18, 2013. In his blog posting, Dr Mahathir pointed out that the Ministry of International Trade and Industry (MITI) had pushed for trade negotiations to be done in secret and without debate publicly or in government. "I dont think it is such a good practice, if indeed that is the practice. "Let us see the record of trade and other agreements negotiated by the Malaysian Government. They do not seem to favour Malaysia much. In fact they seem to result in Malaysia accepting unfavourable terms," he wrote, citing the water agreement between Malaysia and Singapore some 50 years ago. Malaysia's longest-serving prime minister between 1981 and 2003 also noted the country had bought the F/A-18 fighter aircraft from the United States when it actually just wanted to buy the Russian-made MiG-29s. I suppose the people who made this decision know why they must have the F/A-18. Unfortunately, the agreement to purchase did not include the source code and without the source code, the F/A-18 can only fly on missions approved by the United States. "Until then these very expensive fighter planes can only be used for show at LIMA, he said, adding these were very expensive toys. The fighter jets were bought in 1993 when Najib was the then defence minister in Dr Mahathir's Cabinet. Dr Mahathir also railed against the Asean Free Trade Area (AFTA) over cars made in member countries, saying Malaysia's Proton was made with 90 per cent local content and cost higher than non-Asean (Association of South East Asian Nations) cars assembled in the 10-member trade pact.

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While these cars flood the Malaysian market, hardly any Proton is seen in (other) Asean countries. The negotiators may think they negotiated a good deal but I just dont think so. We are simply opening our markets to countries with closed markets, he said. The former prime minister also touched on Malaysian negotiators who had lost the case for sovereignty over Pulau Batu Puteh to Singapore but yet could not negotiate for a new bridge to replace the Causeway between both countries and settle pension fund issues. But we have given up our railway land worth billions to Singapore for practically nothing. And now we must ask Singapores permission to build our high speed train. Look at all the agreements we have entered into and you will find practically none of them favours us," Dr Mahathir said in his posting. Despite that, the former prime minister said his successors now want to accept the TPPA conceived by the US, adding, "This is another attempt by America to let their huge corporations penetrate the domestic markets of the small countries, in particular Government procurements. When the GATT (General Agreement on Trade and Tariff) failed, they invented WTO (World Trade Organisation) for the same purpose. That also failed. They then invented Apec. Still they cannot achieve their objective. They introduced bilateral free trade agreements. Then they promoted a Globalised World, a world without borders in which their money can go anywhere, destroy economies and then pull out. "In case we have forgotten they did this in 1997 and 1998. Still they cannot get at Government procurement. And now they invented TPP, a partnership of unequal, of the strong to take advantage of the weak, Dr Mahathir said. He pointed out the pact was legally binding and any agreement breach would see the Malaysian government sued by US corporations for billions. I have my doubts about our ability to convince the international arbitrators or court. We cannot even convince the World Court over Pulau Batu Puteh. They will have the best lawyers. We will exhaust all our funds to pay our less experienced lawyers. At the end we will lose and pay indemnities and fees running

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into billions. And we will continue to pay until we comply. And when we comply, we will lose more money, Dr Mahathir added. The octogenarian leader, who still travels the world and offers his views on many issues, also noted Malaysia had its domestic issues such as the New Economic Policy (NEP) that promoted affirmative action. Anyone who talks about the New Economic Policy (NEP) is labelled racist by our officials. When the currency rogues attacked us the purpose was to gain control over our economy. We resisted that because we were still free then. "But after we sign the TPP we will be bound hand and foot. No more capital control. We will be colonised again. President Sukarno was right about neo-colonialism, he added. Dr Mahathir also charged that MITI was set to agree on the TPPA and would not entertain counter arguments. "It wants to do this secretly. We dont punish people who make agreements detrimental to the interest of this country. So there was nothing to lose. But this is my country as much as it is the country of the officials and politicians. If people secretly do harm to my country I have a right to complain," he said. July 13, 2013.

Dr M fires SERIOUS WARNING shot at Najib: Slams those who 'secretly do harm' to M'sia
Written by Mahathir Mohamad

The secretary to the Ministry of Trade and Industry avers that trade negations must be done in secret, I suppose by the officers concerned. There should apparently be no public debate or even within the Government.

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I dont think it is such a good practice, if indeed that is the practice. Let us see the record of trade and other agreements negotiated by the Malaysian Government. They do not seem to favour Malaysia much. In fact they seem to result in Malaysia accepting unfavourable terms. Water Firstly let us look at the water agreement with Singapore. Malaysia agreed to sell raw water at 3 cents per 1000 gallons. In return Malaysia can buy 12 per cent or less of the treated water for 50 cents. If the rates are to be revised both countries must agree. If Malaysia raises the rate to 6 cent per 1000 gallons (i.e. 100 per cent) then Singapore can raise by the same factor to 1 dollar per 1000 gallons of treated water. This is not going to benefit Malaysia. And so we never tried to renegotiate the prices. The first agreement lapsed in 2011 and we did not renegotiate at all. The next agreement will lapse in 2060. So we will be getting 3 cents per 1000 gallons of raw water when the cost of living has probably gone up many-many times. To avoid Singapore revising the price of water if we raise the price of raw water, Johor was given enough money to build its own treatment plant. Not having to depend on supply from Singapore, we could raise the price of raw water without Singapore raising the price of treated water. I am told that Johor still needs to buy treated water from Singapore. I really do not know why. So the price has not been renegotiated and I suppose will not be renegotiated until 2060. Today the Singapore Dollar is 2 times the value of the Malaysian Ringgit. At the time of the agreement it was one to one. Are we receiving payment in Singapore Dollar or Malaysian Ringgit? Or is this a secret also? Frankly I dont think we thought very carefully when we negotiated. Incidentally Johor sells water at 30 cent per 1000 gallons to Melaka, i.e. 1000 per cent higher than for Singapore. F/A-18 fighter jets Then there is the purchase of the F/A-18 fighter aircraft. Actually the Government wanted the MIG-29. Somehow part of the fund was used to purchase the F/A-18. I suppose the people who made this decision know why they must have the F/A-18. Unfortunately the agreement to purchase did not include the source code. Without the source code the F/A-18 can only fly on missions approved by the United States. Until

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then these very expensive fighter planes can only be used for show at LIMA. Very expensive toys. Then there is the AFTA, the Asean Free Trade Area. We agreed that cars with 40 per cent local contents qualify as national and tax-free entry into ASEAN markets. Forty per cent local contents are easily achieved by cars from outside ASEAN. This means the Japanese, Korean, Chinese and European cars can get ASEAN countries national status merely by being assembled in ASEAN countries together with batteries, tyres and a few other components. Proton We produce the Proton in Malaysia with 90% local contents. Naturally our costs are higher and cannot compete with non-ASEAN cars assembled in ASEAN countries. While these cars flood the Malaysian market, hardly any Proton is seen in ASEAN countries. The negotiators may think they negotiated a good deal but I just dont think so. We are simply opening our markets to countries with closed markets. But to make matters worse, while Proton must comply with Malaysian safety and other standards, the imported cars are given exemptions from most of these. If Proton wishes to export to the countries of the manufacturers, it must comply with all their standards. So far we cannot export to Japan, Korea and the European countries. This is how good the agreements we have entered into. Pulau Batu Puteh We lost Pulau Batu Puteh but we cannot build the bridge or remove the causeway, or settle the provident fund issue. But we have given up our railway land worth billions to Singapore for practically nothing. And now we must ask Singapores permission to build our high speed train. Look at all the agreements we have entered into and you will find practically none of them favours us. Why the US invented TPP Now we want to swallow the American conceived TPP, Trans Pacific Partnership. This is another attempt by America to let their huge corporations penetrate the domestic markets of the small countries, in particular Government procurements. When the GATT (General Agreement on Trade and Tariff) failed they invented WTO (World Trade Organisation) for the same purpose. That also failed. They then invented APEC. Still they cannot achieve their objective. They introduced bilateral free trade agreements. Then they promoted a Globalised World, a world without borders in which

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their money can go anywhere, destroy economies and then pull out. In case we have forgotten they did this in 1997 8. Still they cannot get at Government procurement. And now they invented TPP, a partnership of unequal, of the strong to take advantage of the weak. They can sue us for billions This is going to be legally binding. If we breach the agreement, their corporations can sue the Government for billions. I have my doubts about our ability to convince the international arbitrators or courts. We cannot even convince the World Court over Pulau Batu Puteh. They will have the best lawyers, lots of them. We will exhaust all our funds to pay our less experienced lawyers. At the end we will lose and pay indemnities and fees running into billions. And we will continue to pay until we comply. And when we comply we will lose more money. We have a domestic problem and we have to solve this problem. They dont care. Anyone who talks about the New Economic Policy (NEP) is labelled racist by our officials. When the currency rogues attacked us the purpose was to gain control over our economy. We resisted that because we were still free then. But after we sign the TPP we will be bound hand and foot. No more capital control. We will be colonised again. President Sukarno was right about neo-colonialism. Secret harm to M'sia I know MITI is already set to agree to the TPP. It will not entertain any counter arguments. It wants to do this secretly. We dont punish people who make agreements detrimental to the interest of this country. So what is there to lose. This is my country as much as it is the country of the officials and politicians. If people secretly do harm to my country I have a right to complain. We talk a lot about transparency. Let us see transparency regarding the TPP negotiation. The October 2013 ultimatum should be ignored. And let China also be included. http://chedet.cc/

Full article: http://www.malaysia-chronicle.com/index.php? option=com_k2&view=item&id=128172:dr-m-fires-serious-warning-shot-at-najib-slams-thosewho-secretly-do-harm-to-msia&Itemid=2#ixzz2YwGtpuPM

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Dr M: We will be colonised again under TPPA

Anisah Shukry | July 13, 2013

The former Prime Minister knows the Ministry of International Trade and Industry (MITI) is set on agreeing to the TPPA despite criticism from all quarters.

KUALA LUMPUR: Malaysia will lose its sovereignty should the BN-led government insist on secretly bulldozing through with the controversial Trans Pacific Partnership Agreement (TPPA), Tun Dr Mahathir Mohamad warned today. The former prime minister predicted that signing the new trade deal with the 11 other Pacific Rim countries would lead to the loss of billions in taxpayers money, and leave Malaysia bound hand and foot to the whims of America. [America] invented TPP, a partnership of unequal, of the strong to take advantage of the weak. This is going to be legally binding. If we breach the agreement, their corporations can sue the Government for billions, he wrote on his blog chedet.cc last night. He doubted Malaysia would win the legal tussle, pointing to the decades-long sovereignty dispute Malaysia had with Singapore over the Pulau Batu Puteh which, in 2008, saw the neighbouring country claim victory in the World Court. After we sign the TPP we will be bound hand and foot. No more capital control. We will be colonised again, warned Mahathir. But the premier, who still wields considerable influence in BN lynchpin Umno, noted that the Ministry of International Trade and Industry (MITI) was set on agreeing to the TPPA despite criticism from all quarters.

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I know the MITI is already set to agree to the TPP. It will not entertain any counter arguments. It wants to do this secretly. We dont punish people who make agreements detrimental to the interest of this country. So what is there to lose, he said. The deal, which is expected to be signed before October, has received flak from opposition leaders as well as civil society, who charge that such an agreement would reduce the publics access to affordable drugs. Most Malaysian businesses, including local producers and farmers, would also suffer from increased competition, according to the Malay Economic Action Council (MTEM). The ongoing TPPA negotions, once sealed, would allow the establishment of an international tribunal to deliberate suits brought by companies from member countries; and gives extension to patented medicine to certain companies. The international tribunal can overrule the decisions made by a countrys court. MITI has insisted that there is no reason to oppose the pact, claiming it would reduce corruption, and that the ministry would continue to safeguard Malaysias economic and trade secrets. But Mahathir compared the TPPA to other unfavourable international pacts Malaysia had signed, such as its water agreement with Singapore, the purchase of fighter aircrafts, and the Asean Free Trade Area pact. They do not seem to favour Malaysia much. In fact they seem to result in Malaysia accepting unfavourable terms, he said. Now we want to swallow the American conceived TPP, Trans Pacific Partnership. This is another attempt by America to let their huge corporations penetrate the domestic markets of the small countries, in particular Government procurements. He urged for the government to remain transparent in the TPPA negotiations, and to ignore the October 2013 deadline for the trade talks. It is learnt that the government and the Malaysian Economic Action Council were pushing for the agreement to be signed before October, just in time for the US presidents first visit to Malaysia.

See more at: http://www.freemalaysiatoday.com/category/nation/2013/07/13/drm-we-will-be-colonised-again-under-tppa/#sthash.2sUSXMSN.dpuf

After Pakatan, Dr M trains sights on TPPA

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JUL Y 13, 2013

PETALING JAYA, July 13 Opposition critics of the Trans-Pacific Partnership Agreement (TPPA) have found an unlikely ally in Tun Dr Mahathir Mohamad, after the former prime minister openly roasted Putrajaya for its intention to sign on with the opaque deal.

Painting a history of lopsided agreements that Malaysia has previously entered into, from the water supply arrangement with Singapore to the ASEAN Free Trade Area (AFTA) that he said puts local carmaker Proton at a disadvantage, Dr Mahathir (picture) pointed out that the TPPA appeared to be another such unfavourable deal. Look at all the agreements we have entered into and you will find practically none of them favours us, he wrote on his personal blog at chedet.cc. Now we want to swallow the American conceived TPP, Trans Pacific Partnership. This is another attempt by America to let their huge corporations penetrate the domestic markets of the small countries, in particular government procurements. That the US is seen as the prime mover of the TPPA will undoubtedly gall Dr Mahathir, a frequent and outspoken critic of the global superpower and its foreign policies, especially in the Middle East. His animosity for the US attained its zenith during the 1997/1998 Asian financial crisis when currency speculators such as American billionaire George Soros were blamed for betting against the ringgit and other Asian currencies, causing the near-ruin of some countries and severely rolled back Malaysias progress achieved under Dr Mahathirs tenure.

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The United States open support for Datuk Seri Anwar Ibrahim following the former deputy prime ministers sacking by Dr Mahathir in 1998 also added to his distaste for the country. When the GATT (General Agreement on Trade and Tariff) failed they invented WTO (World Trade Organisation) for the same purpose. That also failed. They then invented APEC. Still they cannot achieve their objective. They introduced bilateral free trade agreements. Then they promoted a Globalised World, a world without borders in which their money can go anywhere, destroy economies and then pull out. In case we have forgotten they did this in 1997/8, wrote Dr Mahathir. And now they invented TPP, a partnership of unequal, of the strong to take advantage of the weak. On Wednesday, Pakatan Rakyat lawmakers pressed Putrajaya to explain the rationale for wanting to join the TPPA that they say brings scant financial benefit but will cause Malaysians to pay more for medicine and open up government to lawsuits from global firms. Kelana Jaya MP Wong Chen noted then that the government stood to net only RM3 billion from the proposed free trade agreement, according to US think-tank Peterson Institute for International Economics. Predicting the effect of the TPPA, Klang lawmaker Charles Santiago pointed out that the price of medicine jumped by 20 per cent after the US signed a free trade agreement with Jordan. Itll be RM136,000 for breast cancer medicine if the TPPA gets through, said Santiago at the same press conference. For the average Malaysian, medication is not possible, he added. If youre poor, youll die. Santiago noted that the TPPAs Investor-to-State Dispute Settlement (ISDS) system would affect Malaysias sovereignty as foreign investors will be allowed to sue the government if public policies are not made in their interest. Australia was sued by Phillip Morris through its FTA (free trade agreement) with Hong Kong, said the opposition lawmaker, referring to the tobacco giant.

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Dr Mahathir also saw the same weakness with the agreement, and added his doubts about Malaysias ability to fend off such lawsuits. If we breach the agreement, their corporations can sue the government for billions. I have my doubts about our ability to convince the international arbitrators or courts, he wrote. We cannot even convince the World Court over Pulau Batu Puteh. Pulau Batu Puteh, or Pedra Branca as it is now known, was a disputed island claimed by Malaysia and Singapore. It was ruled to be Singaporean territory by the International Court of Justice in 2008 after a protracted legal battle. They will have the best lawyers, lots of them. We will exhaust all our funds to pay our less experienced lawyers. At the end we will lose and pay indemnities and fees running into billions. And we will continue to pay until we comply. And when we comply we will lose more money, Dr Mahathir predicted. The TPPA is a free trade agreement that has been negotiated by the US, Malaysia and nine other nations as part of the larger Trans-Pacific Strategic Economic Partnership since 2010. Critics allege that the agreement has since been co-opted by powerful corporations to allow them to trample over existing consumer, worker and environmental rights in signatory countries. Although it is not definitively known how much if any of the allegations are true, the secretive nature of the negotiations continues to provide a fertile breeding ground for such speculation. - See more at: http://www.themalaymailonline.com/malaysia/article/after-pakatan-dr-mtrains-sights-on-tppa#sthash.epJABJZA.dpuf

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