TWN Info Service on Free Trade Agreements

11 January 2007


PROTESTS STAGED AGAINST US-MALAYSIA FTA

In conjunction with the current fourth round of negotiations in San Francisco between Malaysia and the US on an FTA, a number of activities were organized by the public expressing their concern over the talks.

Today in Kuala Lumpur, a group of people living with HIV/AIDS had gathered in the grounds of the University Malaya Medical Centre to stage a peaceful protest calling for an end to the talks as they are concerned that an FTA with the US will mean higher prices for medicines. Despite assurances from the government that this may not happen, the group which called themselves Positive Malaysian Treatment Access & Advocacy Group (MTAAG +) are not convinced given the experiences of other countries which have signed US FTAs.

A statement issued to the press at today’s gathering is attached below.

Elsewhere, about 20,000 farmers and fishermen in the North have thrown in their support for a signature campaign calling upon the government to halt the FTA talks.

The campaign, spearheaded by the Anti-US FTA Action Committee for the Northern Region, together with several farmers’ and fishermen’s associations in Kedah and Penang, Consumers Association of Penang, environmental group Sahabat Alam Malaysia and other groups.
The signatures collected will be submitted to Prime Minister Abdullah Ahmad Badawi and International Trade and Industry Minister Rafidah Aziz.

Basing their fears on the outcome of FTAs previously signed between the US and other countries like Mexico, they want the government to reveal the details of the agreement and their significance for the fishing and farming communities.
For instance, they are worried that the FTA will mean a reduction of import tariffs on US farm produce that threatens to harm Malaysia's rice farmers.


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Item 1

MTAAG +

Positive Malaysian Treatment Access & Advocacy Group
Penthouse, Wisma MLS, No 31, Jalan Tuanku Abdul Rahman
50100, Kuala Lumpur, Malaysia
Tel: 603-26913691 Fax: 603-26913681

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Press Statement 11 January 2007

“We understand that the Malaysian Government is having the 4th round of negotiations with the USA for a free trade agreement (FTA) in San Francisco this week. As a group representing people living with HIV/AIDS (PLHIV), we are very concerned that the life-saving medicines we need may become unaffordable if a US FTA is signed. We are unable to find out what has been proposed in the Malaysia-US FTA, but based on previous US FTAs and the US’ proposals in the Thai-US FTA negotiations, there are a number of common provisions which are very alarming. We believe the US will demand that Malaysia also agreed to similar provisions, and this will make all new medicines more expensive.

For example, US FTAs usually force more medicines to be patented and the patents have to continue for more than the current 20 years. When a medicine is patented, it means there is a monopoly and so no other manufacturers can make that medicine. That means that the patent owner can charge as much as it likes because there is no competition. When generic competition began for one of the antiretrovirals (ARV) used to treat AIDS, prices fell from US$11,000 per patient per year to US$132 per patient per year. US FTAs also impose monopolies for at least five years even when there is no patent which is called Data Exclusivity (DE).

No generic drugs means no access to affordable life-saving AIDS drugs. This will translate to more deaths for PLHIV. In Malaysia, figures in June 2006 show that there are 73,427 reported cases of HIV infection, and 10,959 AIDS cases in Malaysia. Between 1986 and June 2006, we have already lost 8,334 lives.

We were very encouraged when the Malaysian Government issued a compulsory license in 2003 to import some generic ARVs from India for use by the Ministry of Health (MOH). The average monthly treatment cost by government hospitals and clinics fell by 81% from US$315 to US$58. MOH has targeted 4,000 people to be on ARV therapy. But this is still below the more than 10,000 AIDS cases that need urgent treatment. The compulsory license has also come to an end. So we hope and trust that the Government has plans to ensure continuing access to affordable ARVs. Without ARVs, more PLHIV will die.

We ask the Malaysian Government to reassure us that it is not planning to sign a US FTA or that if it is, that it will ensure public health is protected. We also urge the Malaysian Government to make the proposed text public and consult all Malaysians as this FTA will affect all of us as we all need medicine.”

For more info, please contact : Mr. Edward Low Tel: 012-3278812 e-mail: erd_2000_1999@yahoo.co.uk
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Item 2

20,000 fishermen, farmers protest against FTA
Fauwaz Abdul Aziz, Malaysiakini
Jan 10, 07 1:52pm
(http://www.malaysiakini.com/news/61962)

A signature campaign in Kedah demanding that the government calls off its talks with the US on a free trade agreement (FTA) has won support from 20,000 fishermen and farmers.

The campaign, part of an on-going awareness campaign on the FTA targeting mainly the farming communities in northern Malaysia, will be submitted to premier Abdullah Ahmad Badawi and International Trade and Industry (Miti) Minister Rafidah Aziz.

Spearheading the campaign is the Anti-US FTA Action Committee for the Northern Region, together with several farmers’ and fishermen’s associations in Kedah and Penang, Consumers Association of Penang, environmental group Sahabat Alam Malaysia and other groups.

Basing their fears on the outcome of FTAs previously signed between the US and other countries like Mexico, they want the government to reveal the details of the agreement and their significance for the fishing and farming communities.
“We understand that about two million farmers in Mexico were forced to abandon their lands on account of its FTA with the US," the committee said.
"We also understand that eight out of every 10 (Mexican) farmers have lived in poverty since that agreement took effect,” said Che Ani Mat Zain, who heads a farmers’ committee under the Muda Agricultural Development Authority in Kedah.
Country's rice bowl

He said each of the 106,800 farmers in the state - widely considered the country's rice bowl - owns only two hectares of land. With earnings of less than RM200 a month, they count among the poorest communities in Malaysia.

“We cannot compete with Thai rice in terms of quality and price. What will happen when US farm products enter into our market?” Che Ani asked when contacted today.

Farming and environmental groups in the coalition argued that a possible reduction of import tariffs on US farm produce from the FTA would harm Malaysia's rice farmers.

"Some 296,000 farmers depend on rice for their livelihood, with 116,000 farmers exclusively involved in the cultivation of padi," they said in a statement.

"If the rice tariff goes down to zero in view of the US demands, padi farmers in the country will certainly be unable to compete with the subsidised US rice imports."

Malaysia yesterday entered into the fourth round of negotiations on the FTA with the US Trade Representative (USTR) in San Francisco.

The US and Malaysia have so far held detailed discussions on critical areas such as labour, financial services, autos and government procurement.

Both sides have exchanged initial market access offers in goods and agriculture during the last round of talks in October.

Despite calls by non-governmental organisations and opposition parties for full disclosure, the government has been mum on developments to date, although Miti has released occasional bulletins.

Silence all round

Che Ani, who is from Air Hitam in northern Kedah, said the rural community has not seen sufficient attention focused on FTA-related issues by their elected representatives.

There has been no response either to a letter sent last week to the Prime Minister’s Department in Putrajaya, he said.
“We want Abdullah and Rafidah to openly declare their stand on the FTA and explain it to the people,” said Che Ani.

The committee also called on the government to explain how the US-Malaysia FTA would affect plans in the Ninth Malaysia Plan to increase national food security from 72 percent last year to 90 percent by 2010.
It said about 200 faxes were sent to the offices of Abdullah and Rafidah on Jan 3 by various individuals, groups, and political parties expressing opposition to the talks.

The nationwide fax campaign was organised in the wake of the government’s failure to address various concerns raised.

Malaysian farmers are already angry over tariffs on rice imports being reduced under an existing Southeast Asian regional trade deal.

"So this time, when they see that the demand of the US is really cutting the tariff until zero, I think this will ultimately jeopardise their livelihood," coalition leader Mohamad Nizam Mahshar told AFP.

Meanwhile, the Peoples Anti-USA-Malaysia FTA Coalition co-ordinator Y Kohila said a protest would be held tomorrow at the Universiti Malaya Medical Centre.

The group, which represents people living with Aids/HIV, said that the protest will highlight the potential impact of the FTA on those undergoing costly medical treatment.

A memorandum on the issue was sent this morning to the Prime Minister’s Department, she added.

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Item 3

Beras dibeli dari AS?
Utusan Malaysia, 11 January 2007
(http://www.utusan.com.my/utusan/content.asp?y=2007&dt=0111&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_01.htm)

ALOR STAR 10 Jan. – Masyarakat petani, nelayan dan penduduk luar bandar di Malaysia kini dalam kebimbangan dan keresahan ekoran cadangan Amerika Syarikat (AS) untuk mengeksport lebih banyak produk pertanian ke negara ini, terutama beras.

Kebimbangan mereka semakin ketara apabila rundingan perjanjian Kawasan Perdagangan Bebas AS (USFTA) dan Malaysia kini masuk pusingan keempat dan bakal berlangsung di San Francisco, AS minggu ini.

Koordinator Jawatankuasa Bertindak Membantah USFTA (Wilayah Utara), Mohd. Nizam Mahshar berkata, pihaknya bimbang Malaysia dan AS sedang mempertimbangkan untuk menghapuskan semua bentuk percukaian apabila USFTA dilaksanakan pada 2010 nanti.

“Ini bermakna kerajaan akan mempertimbangkan cukai hasil pertanian AS dikurangkan sehingga sifar,” katanya pada sidang media di sini hari ini yang turut dihadiri wakil-wakil petani dan penduduk luar bandar.
Wakil Badan Bertindak Petani-Petani Kedah, Mohd. Saufi Zakaria berkata, jika cukai itu dikurangkan di bawah USFTA, beras AS yang disokong subsidi yang tinggi oleh kerajaan negara itu akan dapat dijual di pasaran Malaysia pada harga 25 peratus di bawah kos pengeluaran.

“Kita juga dimaklumkan bahawa cukai beras Malaysia kini adalah pada kadar 40 peratus dan akan turun kepada 20 peratus pada 2010 ekoran pelaksanaan Kawasan Perdagangan Bebas Asean (AFTA),” katanya.
Beliau berkata, pakar-pakar ekonomi telah menyatakan bahawa sukar untuk pengusaha beras di Malaysia bersaing di bawah AFTA pada kadar cukai 20 peratus.

“Keadaan akan lebih buruk jika cukai beras jatuh kepada sifar atas desakan AS dalam USFTA. Akibatnya, para petani di Malaysia tidak akan mampu lagi untuk bersaing,” katanya.

Sementara itu, Wakil Badan Muafakat Warga Desa, Aziz Man berkata, jika beras dari AS berlambak di pasaran negara ini dengan cukai sifar, harganya lebih rendah iaitu sekitar RM0.50 sekilogram berbanding beras tempatan yang dijual pada harga melebihi RM1 sekilogram.

“Jika beras AS boleh didapati pada harga lebih murah berbanding beras tempatan, apa perlunya lagi para petani menanam padi?

“Pesawah padi akan kehilangan punca pendapatan mereka dan sawah-sawah padi di negara ini nanti bakal terbiar,” katanya.

Seramai 269,000 petani di Malaysia masih bergantung kepada pertanian padi sebagai sumber rezeki dengan sejumlah 116,000 petani bergantung semata-mata kepada pertanian padi tanpa terlibat dengan kegiatan ekonomi sampingan.

Pengerusi Badan Bertindak Petani Lembaga Kemajuan Pertanian Muda (Mada), Che Ani Mat Zain pula memberitahu, pengeluaran padi negara akan terbantut jika USFTA menjadi kenyataan dan beliau menjangkakan semakin ramai petani bakal ‘menganggur’ nanti.

“Justeru, kita meminta kerajaan Malaysia menghentikan rundingan USFTA sehingga kita mengetahui apakah kesan pelaksanaan perjanjian itu kepada petani-petani di negara ini,” katanya.
Beliau berharap jika rundingan diteruskan segala maklumat hendaklah didedahkan kepada pihak awam dan perbincangan hendaklah secara telus bersama para petani.

– Bernama