[ad_1]
PETALING JAYA: Klang MP Charles Santiago warned today that small and medium-sized enterprises (SMEs) will lose out when the Regional Comprehensive Economic Association (RCEP) is signed on Sunday.
“Assuming that 100% of the goods have zero tariffs, the result is that Malaysia will experience surges in imports and a negative trade balance of goods.
“These import surges will compete with local SMEs. As it stands, a good number of SMEs are closing due to the impact of the Covid-19 pandemic. Having a trade agreement (like RCEP) can make things worse, ”he said in a webinar organized by Unions for Trade Justice.
Eight years in the making, the pact brings together the 10 Asean nations, as well as China, Australia, New Zealand, Japan and South Korea.
The 15 countries represent 29% of the world’s gross domestic product (GDP).
India withdrew from the RCEP talks last year amid concerns that the removal of tariffs would open up the country’s domestic markets to a flood of imports that could hurt local producers.
Santiago had also expressed concern that the RCEP could curb efforts to promote equitable access to vaccines and other medical products, as it protects intellectual property rights at the expense of public health.
He added that there had been a lack of consultation with various parties and stakeholders on the government’s RCEP negotiations.
“Agreements like the RCEP appear to be signed in secret,” and even Parliament has no idea what is being signed, “he told the FMT, adding that although trade agreements do not require parliamentary scrutiny, the RCEP has yet to be ratified. Parliament before its implementation.
The Minister of Industry and International Trade, Mohamed Azmin Ali, said yesterday that the country received a mandate from the cabinet to go ahead with the trade agreement.
He said RCEP would enhance regional economic integration and allow local businesses and merchants to enjoy greater market access.
