Saturday, 7 July 2007

Local interest blocs behind FTA drive?

by Fauwaz Abdul Aziz     Published 7 Jul 2007     Source : Malaysiakini

Complex international developments have led the European Union (EU) to knock on the doors of Asean member-countries to lobby for bilateral free trade agreements (FTA).

In Malaysia as elsewhere, however, internal interests are also pushing the government to sign onto the Asean FTA with EU.

It is high time, said an economist, to look at who these interests are rather than blaming it all on a neo-colonial agenda of external forces.


Monitoring Sustainability of Globalisation director Charles Santiago said while certain government figures are behind the drive, certain local business sectors are also lobbying for the inking of such trade agreements.

"The question we have to ask is: are Asean countries merely victims, as if they were unwilling lambs to the slaughter?

"What are the social and political forces inside Asean member-states who themselves are pro-actively pushing for precisely these kinds of agreements?" he asked.

At this morning's workshop on the EU-Asean FTA in Kuala Lumpur organised by a coalition of political parties and civil society organisations, Santiago said questions should be asked as to which "fractions of capital", interest groups, and policy networks are pushing for the EU-Asean FTA.

"I don't agree that Asean is merely a victim at the end of a big, nasty EU imperialist plot. Do I think that the FTA is part of the new imperialism? Yes, I do. But there's also a process called collaboration with local partners here in Asean," said Santiago in his presentation.
 
'Local partners'

The 'local partners', said Santiago, are those EU-based businesses as well as those, such as textiles exporters, in industries who believe a re-writing of trade rules would result in lower tariffs and, thus, higher profit margins.

They also believe an EU-Asean FTA would give them an edge over companies in Asean whose home-countries do not have preferential trading status with the EU.
 
Knowing who is for and against the FTA would also serve the purpose of identifying strategic allies in other Asean countries as well as within the EU who are against such a trade agreement.
These, said Santiago, would include companies within Malaysia such as the pharmaceuticals, those in the construction industry who are very dependent on government contracts, as well as small and medium businesses that are in danger of being swamped by large EU corporations.

"Here comes the basis for alliances and cooperation between those social forces here in Malaysia and those in Asean countries who oppose such agreements, as well as those social forces in Europe with whom we can make tactical and strategic alliances," said Santiago.
EU and Asean agreed last May to start negotiations for an FTA this month.

A diplomatic row ensued last month, however, following the remarks of EU ambassador to Malaysia Thierry Rommel who claimed its pro-bumiputra policies had driven away European investors.

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