PUTRAJAYA should not endorse the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as it will primarily benefit major corporations, said the Malaysian Trades Union Congress (MTUC).

Secretary-general J. Solomon, in a statement, said it is clear that CPTPP is not truly about fair and free trade between member countries.

Only a handful of chapters in the agreement deal directly with trade, he said.

“Many of the chapters in the agreement are framed to benefit major corporations rather than the people.

“If the Perikatan Nasional government chooses to endorse the ratification of CPTPP, it should ensure that any laws or amendments it introduces do not have negative consequences for foreign investors, even though they benefit workers and the people.”

He said Putrajaya’s failure to address the issue will put into question its ability to act in citizens’ interests.

Solomon was responding to International Trade and Industry Minister Mohamed Azmin Ali, who said the previous Pakatan Harapan administration never decided to reject CPTPP.

Azmin, citing a PH cabinet decision on September 5, 2018, said it was agreed that Malaysia would ratify the agreement, though no timeline was set.

Solomon said the investor-state dispute settlement (ISDS) mechanism in CPTPP allows foreign investors to sue governments over regulations or actions that threaten their ability to make a profit.

“Similar mechanisms were used in the past to challenge minimum wage laws and other rules that affect workers, such as those on health and safety.

“The ISDS feature in CPTPP clearly poses a serious threat to the livelihood and welfare of workers in Malaysia.”

He said corporations may deem unfair any change of policy that improves workers’ rights and conditions.

CPTPP is also likely to result in job losses in some sectors due to increased imports from member countries, he said.

“MTUC and unions worldwide are concerned that workers who lose their jobs will be forced to take up new employment on precarious terms with low pay in the informal sector.”

He added that CPTPP threatens workers’ rights and puts a large number of jobs at risk under the guise of free trade.

“MTUC feels that the government must not ignore the fact that CPTPP lacks the effective protection of workers’ rights, and may well result in the removal of other social, environmental and safety protections in place now.

“We find that CPTPP provides member countries with a lot of latitude to manoeuvre other nations in the group into removing important legislation on workers’ welfare and rights under the pretext of reducing tariff barriers and championing free trade.”

In addition, said Solomon, CPTPP’s labour chapter narrows down the number of claims that can be made against signatories for abuses of workers’ rights, as it states that violations must be “in a manner affecting trade”.

“Similar agreements in other parts of the world have shown that almost always, no action is taken against the perpetrators of such abuses.” – August 8, 2020.