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The Ministry of International Trade and Industry (MITI) Malaysia wishes to correct inaccuracies on the Trans-Pacific Partnership Agreement (TPPA) as contained in the article by Dr Chandra Muzzafar in NST, 9 July 2013.
The article contained the following inaccuracies:
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Claims that a number of US corporations have had full access to the draft texts being negotiated under the TPPA and have been “suggesting amendments”
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Allegations that the TPPA contains a set of rules which would empower foreign corporations to bypass domestic laws and courts and challenge government policies and regulations
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Allegation that TPPA prohibits central banks from imposing capital controls
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The impact on the Government's procurement policies
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Allegations that the TPPA will lead to an increase in the price of medicines and consequently, limit consumer access to generic medicines.
On the first point, all TPP partners have signed a non-disclosure agreement that requires negotiating texts to be treated in confidence. However, this has not prevented TPP members from consulting with their stakeholders on issues in the negotiations. Malaysia has also consulted with our stakeholders for inputs on all issues in the negotiations.
On the second allegation, as in other FTAs, the rules being negotiated under the TPP with respect to foreign corporations are to provide assurance that investors will be treated in a non- discriminatory manner. Investor State Dispute Settlement (ISDS) is a mechanism on the application of the law. It is meant to give assurance to investors that in the event of a dispute, investors have recourse to international arbitration in addition to domestic courts. ISDS in no way infringes the policy freedom of a Government. It merely outlines the process by which a dispute over the underlining substantive principles in the Agreement will be arbitrated.
Thirdly, Bank Negara Malaysia, which leads the negotiations on financial services, has been mandated to ensure that any provision on capital movements would not limit Malaysia's policy space to manage volatile financial flows. This need is underscored by our experience during the Asian Financial Crisis and the latest financial crises in developed economies, which highlight the importance of having the necessary policy tools to address risks in a pre-emptive manner.
On Government procurement (GP), the Government is aware that this is a sensitive area and will ensure that any commitment made in terms of market access to the Government's procurement projects would not negatively impact our socio-economic objectives. The TPPA team on GP, led by Ministry of Finance, will ensure that the Government maintains the necessary policy space to continue to adopt policies that are aimed at correcting socio-economic imbalances within the country.
Finally, with regard to claims that the TPPA will result in expensive patented drugs, and consequently, limit access to generic medicines, we have reiterated many times that Malaysia will not sign onto any international treaty that has a negative impact on the health of the Malaysians.
It must also be highlighted that, negotiations have their own dynamics, and there will be trade-offs and compromises made along the way, but these will be done based on the mandate of the Cabinet, which is committed to protecting Malaysia's interest.
Ministry of International Trade and Industry
9 July 2013
Last Updated 2015-07-21 17:10:11 by vox vox
