TWN Info Service on Free Trade Agreements

17 January 2007


Minister: Rice, Tobacco Excluded in US FTA Talks

In the following report, the Agriculture Minister Tan Sri Muhyiddin Yassin was reported to have said that both tobacco and rice have been listed in Malaysia’s exclusion list in its negotiations for an FTA with the US. This implies that these two major agricultural crops are non-negotiable.

While this may be so, it is however, unclear if the US has agreed to Malaysia’s proposal.

Farmers’ groups and NGOs have expressed concern that duty-free rice imports from the US may threaten the livelihoods of Malaysian rice farmers.

The Minister of International Trade and Industry Rafidah Aziz has allayed fears, saying that rice and tobacco were excluded from the talks to protect local farmers.


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Tobacco, rice excluded in FTA negotiations with US
The Star, 15 Jan 2007
By Mergawati Zulfakar
(http://biz.thestar.com.my/news/story.asp?file=/2007/1/15/business/20070115145508&sec=business)

PUTRAJAYA: Tobacco and rice are listed in Malaysia’s exclusion list in its negotiations for a Free Trade Agreement with the United States.

The Cabinet, according to Agriculture Minister Tan Sri Muhyiddin Yassin, had decided that the Government would not compromise on the livelihood of local farmers.

“No way. The Cabinet decided that rice will not be included. In areas where we can negotiate, we will do so and what we can’t do we will not.

“Whatever happens, if rice is the cause for the FTA not to be signed, then let it be because the Government will not compromise on anything that can affect the interest of our farmers. If the US decides to raise the matter, we will tell them to take it or leave it,” he told the press after delivering a New Year message to his employees at the ministry on Monday.

Muhyiddin was commenting on concerns raised by farmers and non governmental organisations that the US-Malaysia FTA would involve the import of rice and it would jeopardise their income.

On aid for farmers and livestock breeders with the second wave of floods, Muhyiddin said the ministry would have to wait for the calamity to be over before making another estimate.

“We will use the same formula which we used after the first round but before we give any further assistance does that mean we have to give the same aid twice to those who are affected by the floods again?”
An initial RM6 million has been set aside by the ministry to help farmers who suffered losses during floods last month.