S'pore trade pacts 'worrisome': Mahathir
S'pore trade pacts 'worrisome': Mahathir
KUALA LUMPUR (AFP): Malaysian Prime Minister Mahathir Mohamad
on Monday described Singapore's attempts to negotiate separate
free trade agreements as "worrisome."
Countries which secure such deals could gain a "backdoor
entry" into the ASEAN Free Trade Area (AFTA), he told a press
conference.
"This is a worrisome thing because you know, generally in the
AFTA, we accept that anything that has a 40 percent local
content, that must be regarded as national," Mahathir said.
"That means they can enter into the markets of other
countries. It would be very easy for these other countries to
bring in partly completed products and complete them in Singapore
and regard that as Singapore products, which would have free
access into the other countries.
"We have to watch this very carefully because this can be a
backdoor entry into AFTA," Mahathir said.
Singapore and Australia last Friday ended a first round of
talks on a free trade agreement and said they are committed to
reach a deal this year.
The island republic also recently concluded a "Closer
Economic Partnership" with New Zealand and is aggressively
pursuing free trade deals with several countries including Japan,
the United States, Canada, Mexico and the European Union.
It has drawn criticism from fellow members from the
Association of Southeast Asian Nations (ASEAN).
Malaysia's International Trade Minister Rafidah Aziz, in an
interview with an Australian magazine published last week, said
her country would not stand for any attempt by Australia or New
Zealand to use closer economic links to Singapore as a back door
into AFTA.
AFTA aims to cut tariffs to between zero and five percent by
2003 for more developed members of the 10-nation grouping and a
later date for poorer economies.
Investors have expressed concerns ASEAN is dragging its feet
after Malaysia was allowed to delay the opening of its auto
sector to full competition by two years to 2005.
Singapore's Prime Minister Goh Chok Tong, defending his
republic's policy of separate deals, said recently that "those
who can run faster should run faster" and "should not be
restrained by those who don't want to run at all."
Globalization
Mahathir also called Monday for a kinder and gentler
globalization and described unfettered capitalism as a "monster
machine for misery and injustice."
Mahathir, opening a conference on the subject, also urged
developing nations to reject a new round of world trade talks
until "grave imbalances" are rectified.
The premier, a frequent critic of unregulated globalization,
said he believes in the free market.
But "absolute capitalism inconsiderate of humanity and caring
is a monster machine for misery and injustice, and absolute
globalization unguided by rationality and sound judgment is
perhaps the greatest danger to the world."
Mahathir called for a "kinder, gentler world order" of
compassionate capitalism. He urged the developing world to
strengthen solidarity and be pro-active in putting forward its
own proposals.
"At the WTO (World Trade Organization) it is absolutely
critical that we hold firmly to the firm position taken in
Seattle that the present grave imbalances be rectified and that
the implementation issues be resolved.
"We must not agree to a new round until these issues are
satisfactorily settled and until we can all agree to the agenda
for any new round," Mahathir said.
The premier said longstanding trade issues were still crucial.
"We must all fully examine the costs and the consequences of
business cartelization and the escalation of mega business
mergers and a lot more."
He called for a new globalization that is fair to poor
nations, saying the current structure was driven by the "survival
of the fittest," economic efficiency and profit-making.