MALAYSIA could lose its sovereignty to international companies if it decides to stay in the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), groups opposing the agreement said.

They said Malaysia, which had ratified the agreement last September, could be liable to international lawsuits and has no control over any policies introduced by the agreement should it choose to stay.

Yesterday, a group of individuals from various organisations sent a memorandum urging the newly minted unity government to relook the agreement and its impact on the farming community. 

Malaysian Food Sovereignty Malaysia (MFSM) spokesman Nurfitri Amir Muhammad said the previous government did not evaluate its impact on farmers as well as on fishermen when it decided to sign the CPTPP on September 30.

The memorandum was received by Agriculture and Food Security Minister Mohamad Sabu.

The memorandum urged Mohamad to reconsider Malaysia’s position in the agreement as it threatens the rights of poor farmers and fishermen.

In a previous statement dated October 5, the International Trade and Industry Ministry (Miti) said the ratification came after years of detailed deliberation, extensive consultations and careful assessment by the government.

Miti said in light of the findings of the cost-benefit analysis, it was clear that the benefits accruing from the ratification of the CPTPP far outweigh any potential costs that may arise from its implementation.

Speaking to The Malaysian Insight, Parti Sosialis Malaysia (PSM) secretary-general A. Sivarajan said it is time for the new government to walk the talk by pulling out of the partnership if the government is serious in defending the rights of the poor.

Sivarajan’s comment is directly aimed at Prime Minister Anwar Ibrahim, a self-styled people’s champion during his days as a student activists as well as before taking office in Putrajaya.

He said the objection towards the agreement had started back in 2012 when it was known as the Trans Pacific Partnership Agreement.

“We were part of a coalition that objected to Malaysia joining the TPPA back in 2012 and now the name has changed to CPTPP and we are still objecting to the idea.

“Unfortunately, before parliament was dissolved to pave way for the election, the then minister Mohamed Azmin Ali had agreed for Malaysia to join the CPTPP and now it is effective immediately.

“We are negotiating with the new government, as this is one of our efforts and today we met with Mohamad Sabu and we are also looking to meet with the PM.

“We can back out before it’s too late, because if we take our own sweet time, we will be losing so much. We no longer own our sovereignty, we will be controlled by mega companies and we will have to follow their policies.

“Even if we decide not to follow, we will be liable to legal action because we have signed the agreement. It is as if the government has no say and no control under the agreement. Therefore we must withdraw immediately,” said Sivarajan.

He then cited a study carried out by a senior economist from the United Nations Conference on Trade and Development using World Bank methodology, which stated that participation in the CPTPP will reduce Malaysia’s external trade balance by RM9.6 billion per year for the next 10 years.

“This is because by removing tariffs for all imported goods it will encourage additional imports, it is expected that it will go beyond the additional exports under the CPTPP,” he said.

Sivarajan then said that he has been informed by several individuals that there is a circular, which has been sent to various ministries to stop awarding contracts, to local companies as well as to bumiputeras.

“The contracts are said to be awarded to international companies under the agreement. If this is true, what will happen to our economy? Our own people will lose to big international corporations,” he said.

Report directly to PM

Asked if Mohamad had agreed to bring the matter to the cabinet, Sivarajan said the former defence minister had promised to look closely at the report before taking it up with Miti.

To this, Sivarajan expressed worry, saying the prime minister should be directly briefed over the issue.

“If Mohamad studies it and then brings it up to Miti, it does not change anything. Because Miti is the one who wants it signed. The prime minister should be briefed,” he added.

Group to educate public on pact

Nurfitri held the same view as Sivarajan.

“Today the concern is on food security involving farmers, fishermen, breeders and so on. We have others in the health sector, environmental sectors as well as the economy.

“Maybe those in the health sector will send a memorandum next to the Health Ministry,” he said.

Nurfitri said that his group, consisting of 54 organisations, will continue to lobby the government to withdraw from the pact.

The group will also hold a nationwide roadshow to educate the public on the danger of the agreement.

“Malaysia’s control over its own policy will shrink and it will have less power. We will lobby the government and at the same time we will educate the public on why we must reject this trade agreement,” he added.

Previously, Sunway University economics professor Yeah Kim Leng said there should be clarity on issues that were raised over the ratification of the CPTPP.

Yeah said since the agreement was resuscitated with Japan taking the lead, the issues raised on procurement, investors disputing settlements, and other issues need clarity.

On September 30, Malaysia ratified the CPTPP, becoming the ninth out of 11 countries to do so. The other signatories are Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, and Vietnam.

Azmin made the announcement on October 6, four days before parliament was dissolved, that the agreement would come into effect on November 29.

Lim Chee Han, a founding member of Agora Society, said the pact is not just a trade agreement as it has far greater policy impact. Only six of its 30 chapters are directly associated with trade.

“The agreement is a tool preferred by powerful global capitalists or foreign investors to expand their business reach, owning and thus controlling the domestic market in the name of investment, using their financial power and economies of scale to squeeze out domestic competitors,” he said.

Lim said the agreement is largely still the same Barack Obama-led TPPA, which the United States later walked out from, except that 22 of the TPPA’s 1,000 provisions have been temporarily suspended. – December 30, 2022.