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Malaysians Protest EU-Malaysia FTA

On the eve of the second round of FTA talks between Malaysia and the European Union (EU), currently being held in Kuala Lumpur, hundreds of Malaysian citizens gathered to voice their protest against the FTA. The protesters said the free trade deal, if inked, would adversely affect the poor and only benefit multinational corporations. Of particular concern was the possibility that the FTA chapter on intellectual property rights would cause a significant rise in the prices of medicines.

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Item 1

‘FTA with EU will Kill HIV Patients’
Patrick Lee, February 28, 2011
Source: freemalaysiatoday.com

Prices of medicine will be beyond reach to many once talks are concluded and they are likely to die as a result.

KUALA LUMPUR: A Free Trade Agreement (FTA) with the European Union (EU) will significantly raise prices of much-needed anti-HIV medicine, according an advocacy group.

Positive Malaysian Treatment Access and Advocacy Group director Edward Low said that cheaper, generic HIV medicine cannot be sold in Malaysia after EU-FTA talks conclude.

“The FTA would stop locally-made generic medicine, or even from India, to be imported here,” said Low during an anti-FTA protest in front of the Prince Hotel here today.

About 50 Oppressed People’s Network (Jerit) and Parti Sosialis Malaysia (PSM) members also joined in the protest.

PSM officials said that EU representatives and government officials were going to engage in FTA negotiations at the hotel, but they were told the meeting would only be held tomorrow.

The group later presented a memorandum to the EU office along Jalan Tun Razak. More than 10 police officers were present at the protest, though they did not interfere.

Acoording to a Jerit brochure, medicine prices would increase in the face of an FTA because of tightened Intellectual Property protections.

The brochure added that medicine prices in Guatemala had upped multi-fold after it entered into a FTA with the United States.

Low said that more than 93,000 out of an estimated 150,000 HIV patients depended on cheap anti-retroviral drugs to keep them alive.

“If we stop using these drugs, we’ll die,” he said, adding that the drugs were currently subsidised by the government, allowing patients to collect them for free.

He said that an FTA would force generic drug-companies out of the market, and penalise the Malaysian government for dealing with them.

This, he said, would make HIV medicine too expensive for most patients to buy.

SMEs also threatened

DAP economist Charles Santiago said that an FTA would enable a foreign company to take the Malaysian government to court in the event of a business infringement.

He also said that a FTA would end government procurement, and spell the death knell of the country’s Small-Medium Enterprises (SMEs).

“When an FTA is signed, both workers and SMEs will lose their jobs… because it destroys their livelihood,” he said.

“After a FTA, government procurement will be opened to foreign companies to come in to compete for tenders.”

“The government would also have to follow the dictates of the EU when it comes to policies,” added the Klang MP.

PSM-Sungai Siput MP Michael Jeyakumar Devaraj said that it was better for Malaysia to enter into a FTA with less powerful regions such as Africa and Asean.

“We can’t play with rich nations,” he said. “If they wanted to lower their tariff, we would have to lower our tariffs.”

Devaraj also said that a FTA would be more favourable to large corporations, and would sideline low-income workers such as farmers.

According to the Jerit-drafted memorandum, a EU-FTA would insist that Malaysia cut its agricultural tariffs.

“This will expose local chicken and other farmers to subsidised imports from the EU and sold at prices below Malaysia’s cost of production, discouraging them from farming,” said the memo.

It added that Ghana’s chicken farmers ended up with a mere 11% domestic market share as opposed to the previous 95% market share when country’s chicken tariffs were cut and was flooded with subsidised EU chicken.

“If this happened in Malaysia, it would leave it more dependent on imported food and made vulnerable when such imports dry up in times of shortage,” it said

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Item 2

Malaysians Protest EU Free Trade Agreements
Mon Feb 28, 2011 9:25am
Mahi Ramakrishnan, Press TV, Kuala Lumpur

Hundreds of people protested outside the venue where the second round of free trade negotiations between Malaysia and the European Union were taking place.

The protesters said the free trade deal, if inked, would adversely affect the poor and only benefit multinational corporations.

The European Union-Malaysia free trade deal, the protesters claimed, would discourage and wipe out the country's agriculture and farming industries as EU highly subsidizes its farmers.

The anti-FTA activists also carried coffins to signify the possible fatality rates as Malaysia would have to agree to an intellectual property chapter, making medicines expensive.

For example HIV positive patients might have to fork out 15,000 US dollars per person per year compared with the current 80 US dollars.

Earlier a scuffle broke out between the protesters and police as some officers tried to seize banners and placards.

Despite police presence the protesters were chanting slogans calling on the Malaysian government to abandon the talks.

Economists in the country however say the protesters are politicizing the matter and pointed out that the trade deals would create a bigger market and trading bloc which would contribute to Malaysia's economic growth.

Malaysia is the European Union's second trading partner in the Association of Southeast Asian Nations known as ASEAN, after Singapore, with bilateral trade in goods reaching 24 billion euro in 2009.

Early into the protest, the police sprayed chemical irritants at the crowd to force them to disperse.

While Malaysia is keen to push for the free trade agreement with the European Union, economists say that the government must first dismantle affirmative action policies which benefit the Malay community, to ensure competitiveness. But whether or not the Malaysian government is able to do so remains to be seen.

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Item 3

‘Don’t Sign FTA with EU’
Humayun Kabir, February 28, 2011
Source: freemalaysiatoday.com

A coalition of NGOs are calling for a halt to Malaysia-EU negotiations on trade.

IPOH: Some 33 non-governmental organisations comprising student and political bodies are against the government signing the Free Trade Agreement (FTA) with the European Union (EU).

Calling themselves Gabungan Rakyat Membantah FTA (GRMFTA), they want the government to immediately halt talks with the EU delegation who are in Kuala Lumpur today.

The movement, according to spokesperson Y Kohila, also wants the Malaysian government to make public, studies done on the impact of such FTA agreements.

GRMFTA, she said, believes that the country would suffer economic devastation if it went ahead with the agreements and has called instead for an open dialogue on crucial issues of national interest which are listed in their memorandum to the federal government.

Kohila said under the FTA, the EU stands to gain financially and economically in all aspects at the expense of Malaysia.

She claimed Malaysia will eventually face the prospects of economic doom.

She cited, as an example, Latin American countries which had signed the FTA with US and which were now facing the harsh realities of an economic collapse.

She said most trading commodities are heavily subsidised by the US and the EU, hence Malaysian business communities can never compete with them on par.

She said based on their past FTAs, the EU FTAs would exacerbate the existing economic crises and prevent Malaysia from implementing the measures recommended to prevent such crises recurring.

The Malaysia-EU FTA is expected to help open Malaysia’s economy and economic opportunities to foreign companies, including for government procurement.

She said GRMFTA list of concerns includes the FTA’s impact on Malaysian farmers and food security and the country’s ability to move up the value chain.

They are also concerned about the FTA’s impact on  health services and on environmental, social, financial and other regulations.

She said some 500 supporters are aiming to hand over the GRMFTA memorandum detailing their concerns to International Trade and Industry Minister Mustapa Mohamed and the EU delegation.

 


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