Protest at US embassy as Malaysia-US FTA talks proceed

Kuala Lumpur, 7 Feb (Chee Yoke Heong) -- As Malaysia and the US engaged in another round of bilateral talks to finalise a free trade agreement (FTA), a group of citizens staged a peaceful protest outside the US embassy in Kuala Lumpur Wednesday.

About 100 people representing NGOs, political parties, workers' organizations and people living with HIV/AIDS gathered with banners and placards highlighting the potential negative impacts of the talks.

The protestors shouted "Stop FTA, Stop" and "Down FTA, Down" and held up placards reading "Don't trade our lives" and "People before Patent". On guard was a large contingent from the police force, some armed with batons, shields and weapons in standby mode.

A group of people living with HIV/AIDS carried a 'coffin' to send a powerful message of the deadly implications of the agreement on the cost of drugs.

According to Mr. Sivarajah of the Coalition Against the US-Malaysia FTA, Wednesday morning's event is significant because it is the first time that the group has directly attempted to engage the US government. Various concern groups have previously sent memorandum and petitions expressing their worries to the Malaysian government.

He expressed disappointment that the talks are continuing despite the absence of any assessment being done on the impact the FTA will have on many segments of society. Given the negative experiences of other countries which are also negotiating FTAs with the US such as Korea and Thailand, it is likely that Malaysia will also bear the brunt and therefore talks should not go ahead until the effects on the public as well as the various sectors are fully assessed.

The protestors also criticised the secrecy in which the negotiations are being conducted and called for a more transparent process.

According to Jeyakumar Devaraj of the Coalition Against the Privatisation of Health Care Services (CAPHS), the negotiations are being conducted in a non-democratic and un-transparent manner. Before the agreement is signed, the public must be told of the terms of the proposed FTA so that the effects on workers, farmers and others could be known, he added.

CAPHS is particularly opposed to the intellectual property aspects of the US-Malaysia FTA which it says will raise the prices of medicines, as the agreement would impose IPR standards that are higher than the WTO's TRIPS agreement. For example, the US is likely to propose that the duration of patents be extended, and that the grounds for compulsory licenses be limited.

The protestors also took to task the US for pressuring the Malaysian government to conclude the talks. They said the US should instead respect the democratic right of the Malaysian people to have a say in a matter that is going to affect many aspects of their lives.

Representatives from 10 NGOs handed over a memorandum to a US embassy official to register their concern.

The NGOs have expressed worry that the FTA would lead to a loss of jobs in both the agriculture and industrial sectors, as based on the existing US FTAs, the US is likely to require Malaysia to lower all of its tariffs on US products, whether agricultural or manufactured.

In the case of agricultural workers, their livelihoods could be threatened as they might find it difficult to compete with US subsidised agricultural products. This was the case in Mexico where three million of Mexico's ten million farmers could no longer make a living from farming following the signing of the North-American Free Trade Agreement because of the flood of US subsidised corn when Mexico lowered its tariffs.

Similarly, there is concern that the lowering of industrial tariffs could cause a flood in US products which could spell trouble for Malaysian factories and their workers. According to the US National Association of Manufacturers, it is estimated that the US will double its manufacturing exports to Malaysia in the first two years of the US-Malaysia FTA if it is signed.

Wednesday's demonstration is part of the on-going efforts against the FTA which in recent weeks included a signature campaign in the northern region of the country that won support from about 20,000 fishermen and farmers, and a joint declaration by Malaysian and US trade unions voicing dissatisfaction over the talks.

Malaysia and the US entered into the fifth round of negotiations on the FTA on Monday that will last until Friday in Sabah, a Malaysian state on the island of Borneo.

According to press reports from Sabah, the areas that are under discussion thus far included goods, services, investment, trade capacity building, financial services, labour, environment, transparency, competition and agriculture.

Despite calls by NGOs, opposition parties and others for greater transparency in the talks, the government has largely remained silent on developments except for the few releases and public statements giving scant information on the talks.

The schedule has been intense with talks being held back-to-back with the next round expected to take place next month. The last round was held in January in the US. The US hopes to wrap up the talks by the end of March before the expiry on 1 July of President Bush's trade promotion authority, which allows the President to negotiate trade pacts that Congress can only approve or reject, without making any changes.

Many observers doubt that the March deadline can be met as many issues remain contentious, including government procurement, investment, intellectual property and agriculture.

Last week, a new crisis emerged when the US House of Representatives Foreign Affairs Committee Chairman Tom Lantos wrote to the US Trade Representative, urging suspension of the FTA talks with Malaysia to protest an energy development deal signed last month between Malaysian private corporation SKS and state-owned National Iranian Oil Company.

Malaysia threatened to end free trade talks with the US if it is asked to end the energy development deal with Iran and said it will not be pressured by US demands.

"We reject the pressure being inflicted upon us... Do not bring any political matters into trade", Prime Minister Abdullah Badawi was quoted as saying.

But Schwab is unperturbed. "We are pressing ahead with Malaysia for the FTA talks," she was reported to have said. Describing Malaysia as a "tough negotiator," she hoped that talks will be wrapped up by the next round in March.