Malaysia’s Mahathir fears planned FTA with U.S. could have ’adverse’ consequences
The Star, Kuala Lumpur, 22 March 2005
Malaysia’s Mahathir fears planned FTA with U.S. could have ’adverse’ consequences
KUALA LUMPUR, Malaysia (AP) : Former Prime Minister Mahathir Mohamad on Wednesday warned that a free trade agreement with the United States could harm Malaysia, claiming that a similar pact signed with Japan recently has brought no benefits.
"If you ask me, I worry that the FTA with the U.S. may have an adverse effect also on us,’’ Mahathir, who has often voiced concerns about what he views as Western-dominated globalization, was quoted as saying by the national news agency, Bernama.
The U.S. and Malaysia earlier this month agreed to launch FTA talks and conclude them by the end of the year before the deal is sent to Congress in Washington for approval by July 2007.
Mahathir said he feared that Americans might try to gain access to Malaysian government procurement contracts, which have been used for more than three decades to help the country’s ethnic Malay Muslim majority catch up with the wealthier ethnic Chinese minority.
"If we lose that, we would not we able to correct’’ it later, Mahathir added. Mahathir retired in 2003 after 22 years in power. Over the past year, he has often been critical of how the government led by his successor, Abdullah Ahmad Badawi, handled issues such monetary controls and the decline of the national car-making industry.
Mahathir said he has been unimpressed by a pact that Malaysia signed with Japan in December, which will do away with almost all tariffs in 10 years, spurring the flow of Japanese cars, Malaysian mangos and other goods between both nations.
"We are not the greatest producer of vegetables and fruits and these are low value things,’’ Mahathir said. "It would seem to me that the FTA with Japan is not beneficial to us.’’
U.S. officials have said bilateral trade with Malaysia is expected to double by 2010 because of the deal, which would boost Malaysia’s exports to the U.S. and help it diversify away from electronics and electrical goods, which now make up three-quarter of exports.
Malaysian Trade Minister Rafidah Aziz has said she expected no major roadblocks to the FTA, describing it as a "very strategic agreement.’’
She said recently that Malaysia also expects to sign free trade pacts with Pakistan, Australia and New Zealand this year and begin negotiations with India.
