Third World Network | 11 July 2008

EU/US FTAs and Malaysian SMEs

Malaysia is currently negotiating an FTA with the USA and the European Union (EU) and as with any North-South FTAs their scope are extensive. The Third World Network has produced a preliminary report looking at the likely impact of these FTAs on small and medium enterprises (SMEs) in Malaysia. It finds that the goods, services, investment, government procurement and intellectual property chapters are likely to have negative effects on SMEs.

It notes that it is unlikely for SMEs to be able to effectively benefit from the FTA because they are less able to capitalise on market opportunities brought about by globalization as a result of their limited technical and financial capabilities.

The full report “Preliminary analysis of the likely impact of a US/EU free trade agreement on Malaysian small and medium enterprises” is available at http://www.ftamalaysia.org/article.php?aid=205

For further information about the likely impact of the Malaysia-U.S. FTA on other sectors of the Malaysian economy and society, please see http://www.ftamalaysia.org/article.php?aid=156.

— Third World Network
www.twnside.org.sg, www.ftamalaysia.org