By Tun Dr Mahathir Mohamad
UNEQUAL PARTNERS: The
Trans-Pacific Partnership Agreement will allow big economies to plunder smaller
ones
THE
secretary-general of the International Trade and Industry Ministry avers that
trade negotiations must be done in secret, I suppose by the officers concerned.
There should apparently be no public debate, even within the government.
I don't 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.
First, let us look at
the water agreement with Singapore. Malaysia agreed to sell raw water at 3 sen
per 1,000 gallons (4,546 litres). In return Malaysia can buy 12 per cent or
less of the treated water for 50 sen. If the rates are to be revised both
countries must agree.
If Malaysia raises the
rate to 6 sen per 1,000 gallons (i.e. 100 per cent) then Singapore can raise by
the same factor to RM1 per 1,000 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 sen per 1,000 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 21/2 times the value of the Malaysian ringgit. At the time of the
agreement it was one to one. Are we receiving payment in Singapore dollars or
Malaysian ringgit? Or is this a secret also?
Frankly I don't think we
thought very carefully when we negotiated. Incidentally, Johor sells water at
30 sen per 1,000 gallons to Malacca, i.e. 1,000 per cent higher than to Singapore.
There are many
agreements entered into by Malaysia that are unfavourable to us.
For example, the Afta,
the Asean Free Trade Area. We agreed that cars with 40 per cent local content
qualify as national cars and allowed tax-free entry into Asean markets. Forty
per cent local content is easily achieved by non-Asean cars produced in Asean
countries.
This means Japanese,
Korean, Chinese and European cars can get Asean countries' national status
merely by being assembled in Asean countries with batteries, tyres and a few
other components.
We produce the Proton in
Malaysia with 90 per cent local content. 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 don't 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,
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 Europe.
This is how good the
agreements which we have entered into upon closer examination.
Now, we are
negotiating the American-conceived TPP, Trans-Pacific Partnership
Agreement. This is another attempt by America to let their huge
corporations penetrate the markets of the small countries, in particular,
government procurement.
When the GATT (General
Agreement on Tariffs and Trade) failed they invented WTO (World Trade
Organisation) for the same purpose. That also failed. They then invented Apec
(Asia-Pacific Economic Cooperation). Still, they could not 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 1997/98.
Still, they cannot get
at government procurement. And now they invented TPP, a partnership of
unequals, 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. 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, which we must solve. They don't care. Anyone who talks about the New
Economic Policy is labelled racist by our officials.
When the currency rogues
attacked us the purpose was to gain control over our economy. We resisted
because we were still free then. But after we sign the TPP we will be bound
hand and foot. No more capital controls. We will be colonised again. President
Sukarno was right about neo-colonialism.
I know MITI is set to
agree to the TPP. It will not entertain any counter arguments. It wants to do
this secretly. We don't 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 negotiations. The
October ultimatum should be ignored. And let China be included.