Reassess Trans-Pacific Partnership Agreement

Nile Bowie

HAVE you heard of the Trans-Pacific Partnership Agreement? It is a multilateral trade agreement being negotiated between Malaysia, the United States and several other Pacific Rim nations, and if it becomes law, it will have an immense impact on the country's financial, economic, and even legal affairs. In other words, a strong case can be made that the TPPA would undermine Malaysia's sovereignty. Malaysia is set to host the next round of negotiations for the TPPA this month, but there are still significant challenges ahead before the trade deal can become law.

Putrajaya has taken a strong stance against any extension of intellectual property rights involving medicine in the deal, which could otherwise significantly inflate the price of generic medications. International Trade and Industry Minister Datuk Seri Mustapa Mohamed told the media that he would defend existing policies and choose not to sign the TPPA if the terms didn't benefit Malaysia.

It would be strange for Malaysia to agree to the TPPA, given its past criticism of neo-liberal capitalism and deregulated trade. Former prime minister Tun Dr Mahathir Mohamad once likened free trade to a house with all its doors and windows left open, and as a consequence, bears, wolves and other predatory beasts would invite themselves inside.

He also called for a new model of globalisation that could be more equitable, and more in service to social uplift and poverty reduction, rather than to a handful of Western banks and mega-corporations.
Dr Mahathir attempted to ingrain that philosophy in Umno, and it has served Malaysia well. Signing the TPPA would mean restructuring the entire economy and legal system to conform to the stipulations of the deal, resulting in Malaysia being a lot more vulnerable to casino capitalism and currency speculation.

The TPPA would prohibit Malaysia from banning risky financial instruments, speculation and derivatives. Tt would also be banned from enacting capital controls, while banks would enjoy significantly less regulatory oversight. Additionally, it imposes strict intellectual property legislation that would undermine access to the Internet and digital file sharing, as well as stymie the production of generic medications that could violate foreign patents.

Not only does it create incentives for multinational corporations to offshore jobs by encouraging bottom-of-the-barrel low wage conditions in participating countries, but it also makes signatory countries accountable to international trade tribunals, giving foreign corporations the ability to demand compensation for any expected future profits that may have been lost or hindered by existing national laws.

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