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About five years ago in July 2013, in the blog Chedet, Tun Dr Mahathir Mohamad voiced his views by describing a United States (US) Trans-Pacific Partnership Agreement (TPP) to enable their large companies to penetrate the domestic market of small countries, especially in government procurement issues.
Dr Mahathir at the time also warned that the TPP was detrimental to Malaysia and described it as an unequal partnership with the aim of a strong party to take advantage of the weak.
"When a currency rogue strikes us with the aim of gaining control over the economy, we are opposed because at that time we are still free.
"But after we sign the TPP, our feet and arms will be tied, no more capital controls, we will be colonized again, President Sukarno is right about neocolonialism," he wrote in his blog.
According to Dr Mahathir, previous attempts were made through the General Agreement on Trade and Tariff (GATT), the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC).
US did not join
The writers view is that his worries are the tremendous impact the small country faces and it has been voiced but the government and former Minister of International Trade and Industry, Datuk Seri Mustafa Mohamad do not see any losses that Malaysia will suffer.
The US itself under President Donald Trump does not want to join him and does not want to open his country to foreign products with lower costs of goods and services.
Now after becoming Prime Minister for the second time on May 10, Dr Mahathir called on the TPP to be reviewed as the achievements of small-scale economies such as Malaysia were less prominent through the current terms and conditions set by the negotiations.
According to him interviewed with the Nikkei Japan trade alliance sealed between 11 countries should take into account the level of development and economic development of each country.
"Small and weak countries should be given the opportunity to protect their products.
"Thus, the TPP should be reviewed so that this agreement can be used by the country," he said.
The service is also involved
However, he did not state whether Malaysia would leave the TPP or otherwise. The proposal is expected to be a big blow to other TPP members, including Japan, Australia, Brunei, Canada, Chile, Mexico, New Zealand, Peru, Singapore and Vietnam.
Earlier, the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), which was signed by 11 countries in March, was aimed at balancing US sanctions, withdrawing from the alliance last year.
Dr Mahathir actually understands and sees that there is a misconception in interpreting this multilateral trade agreement. It does not revolve around trade and touches the market aspect of foreign countries only, so that countries such as Malaysia can sell more export goods.
Perhaps in the past the nature of the trade agreement was of such nature, but the new trade agreement was not bound to trade alone.
In the World Trade Organization (WTO), it covers services, intellectual property rights and investment measures.
Even in this new trade agreement, it usually covers a series of issues such as full investment policy; government procurement, competition policy; Electronic commerce (e-commerce) and the latest are state-owned corporations.
This is in addition to the trade of goods, services and intentional property.
Government policy implications
Malaysias signature agreement, especially in the TPP and the new Comprehensive and Progressive Agreement for the TPP will present important implications for government policies covering economic, social and political aspects.
For example in the memorandum submitted by the Consumers Association of Penang (CAP) and the Third World Network for the renewal of institutional arrangements covering the negotiations and agreements submitted to the Prime Minister on May 28, some examples include:
In some agreements concerning a chapter on investments requiring a country to open doors to all types of foreign investment (including short-term speculative funds), it limits the states requirements as in the transfer of technology or the use of local labor and management; and provide protection rights to foreign investors to allow them to sue governments in foreign tribunals for future profit losses if government policy changes. Therefore, to a new government that is designing a fundamental change, it certainly invites certain implications.
In the government procurement chapter, it requires the government to open up foreign investors in the business of supplying goods and services and their bids in government projects by prohibiting any priorities to local companies despite the exception in matters relating to Bumiputera companies given the period within a few years before being implemented.
In the chapter of TPP government-owned companies have the objective of putting barriers in the operation of government-owned companies (GLCs). The immediate goal is to open up business acquisitions to state-owned companies and federal governments by limiting government assistance to those companies. This will lead to the influx of foreign companies in the local market.
These are some of the things that the new government should pay attention to as they have not been emphasized by the government before.
In this regard, in the WTO trade negotiations, developed countries are leading their efforts towards introducing new issues that benefit them. These include electronic commerce, proposals that will affect developing countries efforts such as Malaysia to advance our national capabilities into the global economy.
Despite the serious implications of trade and investment agreements, there is still little public awareness in the country on the content, negotiation process and implications for the people.
The transparency of the Pakatan Harapan government will open the peoples awareness of multilateral trade agreements such as the TPP and the WTO with the people will know the trick and politics of industrial power states such as the US.
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