TWN Info Service on Free Trade Agreements

01 March 2007


Government Urged Not to Rush into Signing FTA with US

The Action Committee Against the US FTA representing farmers, fisherfolks, NGOs and the rural communities in Kedah and Penang has called on the government not to rush into signing an FTA with the US given that many issues have yet to be thoroughly considered and its implications not fully studied.

Though the government has given the assuarance that the issue of rice will not be negotiated, the Committee is not convinced that the US will agree.

They asked for greater transparency on the part of the government and that stakeholders consultations be held in order to assess the FTA as it has far-reaching implications to the public and the country’s sovereignty.

The Committee’s concerns are stated in its press statements below.


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JAWATANKUASA BERTINDAK MEMBANTAH US FTA
(WILAYAH UTARA)
ACTION COMMITTEE AGAINST THE US FTA (NORTHERN REGION)
d/a 21, Lintang Delima 15, 11700 P.Pinang
Tel ; (6) 04 6596930 Fax ; (6) 04 6596 931 Email ; zamashari@yahoo.com

(VERSI MELAYU)

KENYATAAN MEDIA 25 FEBRUARI 2007


MENTERI KABINET DIMINTA TIDAK TERGESA-GESA MENYELESAIKAN RUNDINGAN US-FTA TANPA PENGLIBATAN DAN KONSULTASI MASYARAKAT AWAM

Kami adalah kumpulan yang mewakili petani, nelayan, masyarakat luar bandar dan NGOs dari Kedah dan Pulau Pinang.

Kami terlalu prihatin terhadap sebarang tindakan kerajaan untuk bersetuju dengan Malaysia US-FTA ( MUFTA ) tanpa penglibatan dan konsultasi masyarakat awam sedangkan terdapat isu-isu yang menimbulkan perbalahan di dalam perundingan tersebut.

Kami difahamkan Menteri Kabinet telah diberi masa 1 minggu untuk memberi maklumbalas mengenai 58 isu-isu yang perlu diselesaikan sebelum bersetuju dengan MUFTA.

Kami tidak memahami mengapa kerajaan Malaysia, terburu-buru untuk menyelesaikan rundingan tersebut atas desakan Amerika sedangkan kita memerlukan penilaian yang lengkap untuk menyelesaikan isu-isu yang menimbulkan perbalahan dalam perjanjian tersebut.

Kami telah dimaklumkan sebelum ini yang beras tidak termasuk di dalam FTA. Kami juga telah diberi jaminan oleh Menteri Pertanian dan Menteri Perdagangan Antarabangsa bahawa beras tidak termasuk di dalam perundingan.

Walaubagaimanapun dari sumber yang kami perolehi US belum bersetuju mengenai perkara tersebut. Merujuk kepada FTA lain yang ditandatangani, beras telah dimasukkan bagi FTA bersama Columbia dan America Tengah.

Jaminan yang telah dibuat menteri tidak memberi makna, dan kami menyatakan kebimbangan kemungkinan beras akan turut dimasukkan apabila kerajaan mahu menamatkan perjanjian FTA dengan Amerika.

Sekiranya itu berlaku, maka masa depan penanam padi di Malaysia akan terjejas. Manakala sasaran kerajaan agar 90% pengeluaran beras tempatan dapat menampung penggunaan beras penduduk Malaysia dalam Rancangan Malaysia ke 9, adalah mustahil.

Amerika meminta tarif kosong untuk beras, manakala di Malaysia tarif semasa adalah 40% dan BERNAS merupakan pengimport tunggal beras dalam negara. Tambahan pula, kerajaan Malaysia mengenakan kuota untuk menimport beras dari luar.

Sekiranya tarif beras pada tahap kosong, beras dari US dengan mudah akan masuk ke dalam negara dan bersaing dengan beras tempatan. Pada masa ini harga beras tempatan yang dijual adalah pada harga RM 1.70 hingga RM 2.00 sekilo, bergantung kepada gred beras tersebut.

Melalui penyelidikan kami, eksport beras dari US adalah pada harga sekitar RM 1.40 sekilo dan berkemungkinan turun menjadi lebih rendah lagi. Harga yang rendah ini akan menyebabkan pembeli akan membeli beras dari US yang lebih murah berbanding beras tempatan.

Beras US menerima subsidi yang tinggi. Sebagai contoh antara tahun 2000 hingga 2003, subsidi bernilai US415 ( RM 1, 452 ) untuk menanam padi bagi mendapatkan hasil satu tan beras putih. Harga eksport beras US adalah US$ 274 (RM 959) per tan, ini bermakna beras tersebut dihantar ke pasaran negara membangun pada harga 34% lebih rendah dari kos sebenar.

Keadaan ini adalah sesuatu yang tidak adil kepada negara membangun seperti Malaysia.

Selain itu, kami juga mengetahui bahawa Amerika berkeras untuk menentang undang-undang mengenai pelabelan makanan yang di ubahsuai (genetically modified foods) dan produk dalam perundingan FTA.

Tekanan ini datang dari Industri Biotek Amerika, yang mahu menjual GMF dan biji benih yang diubahsuai tanpa pengetahuan pengguna dan petani bahawa produk yang dijual merupakan GM.

Semestinya pengguna dan petani mempunyai hak untuk mendapat maklumat, bagi membuat pilihan samaada memakan atau menanam GM produk.

Sekiranya kerajaan Malaysia terburu-buru untuk menamatkan perjanjian tersebut, bagaimana mereka dapat menjamin kepentingan masyarakat awam dan pengguna tidak digadaikan ?

Sehingga hari ini segala permintaan untuk maklumat berhubung MUFTA kami tidak dipenuhi, dan kerajaan tidak memukakan laporan terperinci analisa kos-faedah MUFFTA tersebut.

Kerajaan perlu mendedahkan penilaian mengenai analisa kos-faedah yang telah dibuat oleh kerajaan kepada pihak awam dan masyarakat sebelum bersetuju dengan MUFTA.

Kerajaan tidak perlu terburu-buru membuat keputusan bersetuju dengan MUFTA, sedangkan banyak persoalan yang masih belum terjawab dan tidak jelas.

Kedaulatan negara, kepentingan para petani dan masyarakat awam tidak boleh dipertaruhkan.

Kita akan menyambut 50 tahun merdeka. Kerajaan perlu memastikan kita tidak menjadi negara yang terpaksa bergantung dengan Amerika.

Ibarat pepatah melayu, “Biar lambat asal selamat”. Janganlah terburu-buru


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JAWATANKUASA BERTINDAK MEMBANTAH US FTA
(WILAYAH UTARA)
ACTION COMMITTEE AGAINST THE US FTA (NORTHERN REGION)
d/a 21, Lintang Delima 15, 11700 P.Pinang
Tel ; (6) 04 6596930 Fax ; (6) 04 6596 931 Email ; zamashari@yahoo.com

(ENGLISH VERSION)

PRESS RELEASE 25 FEBRUARI 2007


CABINET MINISTERS URGED NOT TO RUSH TO CONCLUDE US FTA
WITHOUT PUBLIC DISCLOSURE AND CONSULTATION


We are a group representing farmers, fisherfolk, rural citizens and NGOs from Kedah and Penang.

We are extremely concerned by government moves to conclude the Malaysia US Free Trade Agreement (MUFTA) without any public disclosure and consultation as to how contentious issues will be treated in the agreement.

We understand that Cabinet ministers have been asked to give their feedback within one week from last week on 58 contentious issues which are holding back the government from concluding the FTA.

We cannot understand why the Malaysian government is rushing into a deal dictated by the US government when a thorough and proper evaluation and consideration of the contentious issues is needed.

We have in the past raised the issue of ‘rice’ not being part of the FTA. We have been given assurances by both the Minister of Agriculture and the Minister of International Trade that ‘rice’ will not be negotiated.

However, we have learnt that the US has yet to agree to this, and in fact, in relation to other FTAs such as that with Columbia and Central America, the US has insisted that ‘rice’ be part of the FTA.

Hence, mere assurances by the Ministers are not enough as we are concerned that the government may trade away the ‘rice’ issue so as to conclude the FTA with the US.

If this happens, the livelihood of rice farmers in Malaysia will be ruined and the government target to achieve 90% self-sufficiency in rice under the 9th Malaysia plan impossible.

The US is asking for zero tariffs on rice. In Malaysia currently, there is a tariff of 40% on rice and BERNAS is the sole importer of rice into the country, with definite quotas as to how much foreign rice can be brought in.

If the tariff on rice goes to zero, US rice can easily come into the country and compete with our local rice. Presently, local rice is sold in the market from around RM1.70 to RM2 a kilo, depending on the grade.

Our research shows that prevailing export prices for US long grain rice is around RM1.40 per kilo and can even go down further. This is lower than the price of local rice, and consumers may opt for US rice instead of our local rice since it is cheaper.

US rice is highly subsidized. For instance, on average, between 2000 and 2003, it cost US$415 (RM1, 452) to grow and mill one tonne of white rice in the US. However, the export price of that rice was just US$ 274 (RM959) per tonne, which means there was dumping on developing country markets at a price 34% below its true cost.

This is most unfair to developing countries such as ours.

Further, we also understand that the US is also insisting that Malaysia’s proposed laws on labelling of genetically modified foods and products are withdrawn as part of the FTA deal.

This push is coming from the US biotech companies who want to sell us genetically modified foods and seeds without consumers and farmers knowing if the products are genetically modified.

Consumers and farmers have a basic right to such information so they can make an informed choice of whether they want to eat or plant GM products.

If the Malaysian government is going to rush into a deal, how will it ensure that the interests of the public, farmers and consumers are not compromised?

Mere assurances by the Ministers will not do. There must be efforts on the part of the government to make public the Malaysian government intentions.

Until today, despite all our requests and demands, the government has not disclosed the detailed costs and benefits of such an FTA.

The Government must make public its evaluation of the costs and benefits of such an FTA and hold stakeholder consultations, including with civil society groups before concluding the FTA.

There is no need to rush the conclusion of FTA when many questions remain unanswered and are unclear.

At stake is the interest of farmers, the general public and national sovereignty.

We are celebrating 50 years of independence this year. We should be very cautious in not becoming a nation dependent on the US and its companies.

As the Malay saying goes, “Biar lambat, asalkan selamat”. (Better to be slow than be sorry).