FacebookTwitterGoogle+RedditEmail

Trans Pacific Partnership is a Threat To National Sovereignty

by Dr. CHANDRA MUZAFFAR

The proponents of the Trans Pacific Partnership argue that the TPP would bring huge benefits to Malaysia “with as much as US $ 40 billion (RM 128.4 billion) in annual export gains and US $ 25 billion in annual income gains by 2025.” Small and medium enterprises (SMEs) in particular will reap a bonanza. The TPP, it is said, will also “give Malaysia preferential access to a US $ 15 trillion economy, which means access to the US $ 500 billion in US government tenders.” As against these projections, there are issues of tremendous significance pertaining to the TPP that have been raised by a variety of citizen groups in almost all the 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam) that are currently part of the negotiation process. These issues have emerged as a result of leaks since no officially sanctioned draft has been placed before the public.

The negotiations — the 18th round of which will commence in Kota Kinabalu (Malaysia) on the 15th of July 2013 — are shrouded in secrecy though representatives of major corporations such as Monsanto, Walmart, Bank of America, JP Morgan, Cargill, Exxon-Mobil, and Chevron, among others, it is alleged, have had full access to the draft and have been “suggesting amendments.” One of the issues that has caused grave concern is a set of rules in the TPP which apparently would empower foreign corporations to bypass domestic laws and courts and challenge government policies and regulations aimed at protecting the public interest via tribunals linked to the World Bank and the UN. If this is true, it would be an affront to national sovereignty.

The TPP also prohibits governments and central banks from imposing capital controls or banning risky financial products. Central banks would have diminished capacity to regulate the entry and exit of speculative capital. Countries that are part of the TPP would be compelled to create an even more conducive environment for casino capitalism. Given Malaysia’s relative success in developing regulatory mechanisms during and after the 1998 Asian financial crisis, this aspect of the TPP would be particularly galling.

The adverse impact of this trade pact upon national sovereignty and the economic wellbeing of countries such as Malaysia is underscored by yet another provision which questions our procurement policies. Apart from seeking to rectify economic imbalances, government procurement policies have also attempted to expedite technology transfers to local industries, enhance export capabilities and curb foreign exchange outflows. These are goals that do not conform to TPP objectives.

The TPP also allows pharmaceutical corporations to increase the price of medicines and to limit consumer access to cheaper generic drugs. Monopoly patents would be better protected and the purchase of generic drugs would be made more difficult. At the same time, by designating a whole spectrum of policies, regulations and practices as “trade barriers” the proposed agreement undermines some of the people oriented measures associated with different TPP countries. For instance, the TPP, it is alleged, upbraids the Malaysian government for “requiring that slaughter plants maintain dedicated halal facilities and ensure segregated transportation for halal and non-halal products.”

While some of the provisions of the TPP may be set aside at the behest of individual countries, it is obvious that the US which is the driving force behind the pact is determined to use it as its vehicle to strengthen its economic position in the Pacific region in the face of the rise of China. It explains why China itself — economically the most dynamic nation in the region — has not been invited to join the TPP. This is why it would be naïve to view the TPP as a mere economic and trade arrangement. Its underlying motive is clearly political. It is a critical weapon in the US arsenal for curbing and containing the emergence of a power which has the potential of shaping the future of the entire Pacific in the decades to come.

The US will not allow this to happen. It knows that in order to remain as the world’s sole superpower it has to ensure that it is at the helm of that one region with the greatest economic viability and vitality. The US already has 320,000 troops in the Pacific region. That is the military arm of Pacific Power. The TPP is designed to secure the economic dimension of Pacific Power. As a nation committed to harmonious relations among states, Malaysia should be extra cautious about participating in any venture by any power, be it the United States or China, to enhance its hegemony over the Pacific — a region whose very name signifies peace.

Dr. Chandra Muzaffar is the President of the International Movement for a Just World (JUST)

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

March 23, 2017
Chip Gibbons
Crusader-in-Chief: the Strange Rehabilitation of George W. Bush
Michael J. Sainato
Cybersecurity Firm That Attributed DNC Hacks to Russia May Have Fabricated Russia Hacking in Ukraine
Chuck Collins
Underwater Nation: As the Rich Thrive, the Rest of Us Sink
CJ Hopkins
The United States of Cognitive Dissonance
Howard Lisnoff
BDS, Women’s Rights, Human Rights and the Failings of Security States
Mike Whitney
Will Washington Risk WW3 to Block an Emerging EU-Russia Superstate
John Wight
Martin McGuinnes: Man of War who Fought for Peace in Ireland
Linn Washington Jr.
Ryancare Wreckage
Eileen Appelbaum
What We Learned From Just Two Pages of Trump’s Tax Returns
Mark Weisbrot
Ecuador’s Elections: Why National Sovereignty Matters
Thomas Knapp
It’s Time to End America’s Longest War
Chris Zinda
Aggregate Journalism at Salon
David Welsh
Bay Area Rallies Against Trump’s Muslim Ban II
March 22, 2017
Paul Street
Russiagate and the Democratic Party are for Chumps
Russell Mokhiber
Single-Payer, the Progressive Caucus and the Cuban Revolution
Gavin Lewis
McCarthyite Anti-Semitism Smears and Racism at the Guardian/Observer
Kathy Kelly
Reality and the U.S.-Made Famine in Yemen
Kim C. Domenico
Ending Our Secret Alliance with Victimhood: Toward an Adult Politics
L. Ali Khan
Profiling Islamophobes
Calvin Priest
May Day: Seattle Educators Moving Closer to Strike
David Swanson
Jimmy Breslin on How to Impeach Trump
Dave Lindorff
There Won’t Be Another Jimmy Breslin
Jonathan Latham
The Meaning of Life
Robert Fisk
Martin McGuinness: From “Super-Terrorist” to Super Statesman
Steve Horn
Architect of Federal Fracking Loophole May Head Trump Environmental Council
Binoy Kampmark
Grief, Loss and Losing a Father
Jim Tull
Will the Poor Always Be With Us?
Jesse Jackson
Trump’s “March Massacre” Budget
Joe Emersberger
Rafael Correa and the Future of Ecuador: a Response to James McEnteer
March 21, 2017
Reshmi Dutt-Ballerstadt
On Being the “Right Kind of Brown”
Kenneth Surin
God, Guns, Gays, Gummint: the Career of Rep. Bad Bob Goodlatte
David Rosen
Popular Insurgencies: Reshaping the Political Landscape
Ryan LaMothe
The Totalitarian Strain in American Democracy
Eric Sommer
The House Intelligence Committee: Evidence Not Required
Mike Hastie
My Lai Massacre, 49 Years Later
James McEnteer
An Era Ends in Ecuador: Forward or Back?
Evan Jones
Beyond the Pale
Stansfield Smith
First Two Months in Power: Hitler vs. Trump
Dulce Morales
A Movement for ‘Sanctuary Campuses’ Takes Shape
Pepe Escobar
Could Great Wall of Iron become New Silk Roadblock?
Olivia Alperstein
Trump Could Start a Nuclear War, Right Now
David Macaray
Norwegians Are the Happiest People on Earth
March 20, 2017
Michael Schwalbe
Tears of Solidarity
Patrick Cockburn
Brexit, Nationalism and the Damage Done
Peter Stone Brown
Chuck Berry: the First Poet of Rock and Roll
FacebookTwitterGoogle+RedditEmail