Intellectual property - medicine patent, copyright

The big pharmaceutical companies will get medicine patents and obtain longer patents easily. This would also render generic medicines more difficult to or delayed access, such as medicines for cancer, HIV and other chronic illnesses.

For example, Herceptin which is used for cancer, currently costs RM8,000 per cycle and is used for 17 cycles. Treating a lung cancer patient costs an average of RM44,725 (US$14,455) per year, per patient.

NONE The chance of access to these medicines for those unable to afford these exorbitant prices becomes slimmer as access to generic medicine is delayed through TPPA as developed countries may seek to extend the life of the patent beyond the 20-year period.

Just as the TPPA's intellectual property (IP) protection measures would make medical treatment more expensive for ordinary Malaysians, educational and research activities could also be harmed and made more expensive by more stringent copyright laws proposed.

These include the ‘digital commons' such as the Internet-based resources. Current copyright law is proposed to be extended from 50 years to 120. That's also 70 more years of limited accessibility to students and academia due to prohibitive prices of book and references.

Tobacco control and public health

Tobacco is not a product with our average demand profile - it kills at least 50 percent of its consumers prematurely. Malaysia, along with all other TPP countries except the United States, is party to the WHO Framework Convention on Tobacco Control (FCTC) which requires countries to regulate tobacco, reduce its use and withhold grant incentives to that industry.

anti tobacco conf 190505 poster The FCTC is a binding international treaty and Malaysia has been a party to it; this entails the aligning of national policies with the goal of reduction in tobacco use and regulating the industry.

Many provisions in various TPPA chapters contradict those in the FCTC. This alone is cause for concern considering the potential conflicts between the two in the future, and more importantly the general harm to public health of a more heavily tobacco-consuming society.

On capital control capability

Another major consequence of the TPPA is restriction on our capability to enforce capital control. According to Reinhart & Roghoff (2009), periods of high international capital mobility have repeatedly produced international banking crises, not only as witnessed here at home and in the region in 1997, but also historically.

When financial systems are adequately regulated, the scope for damaging financial cycles can be contained, or at least leave the economy less prone to such large cyclical swings as seen in today's more liberalised environments.

The idea is not to destruct efforts for a liberalised and efficient financial sector, nor to hinder Malaysia's competitiveness in attracting foreign investments. Rather, it is to cushion impacts of economic shocks to the most vulnerable Malaysian businesses and entrepreneurs.

It is not archaic to take some heed of temporary capital controls measures as undertaken during the Asian financial crisis. Even the International Monetary Fund (IMF) admits to the role that capital control played in expediting our recovery compared to that of Indonesia and Thailand.

On telecommunications

A chapter on telecommunications is another notable feature of an FTA, which undoubtedly is discussed in the TPPA as well. The telecommunication plans to promote competitive access for telecommunications providers among TPPA countries.

NONE Telecommunication enterprises from other TPPA countries must be ensured access to existing infrastructure of a public telecommunications network through interconnection and access to physical facilities.

In the case of Malaysia, we are concerned about the viability of TM Berhad which has been undertaking capital expenditure to wire up the country expansively with high-speed broadband on fibre optics on a public-private partnership basis.

Providing access to foreign competitors on existing infrastructure will put serious strain onto TM's business viability, perhaps even driving our local telecommunication giant into the doldrums.

The issue of export taxes

Export taxes are imposed on importers of primary goods. It functions in two ways; it raises government revenue and develops local intermediary industries. Export taxes raise prices for raw materials in the export market making final products that we produce domestically, cheaper and more attractive than those produced abroad.

TPPA attempts to have a say in this, too. By reducing or abolishing export taxes, a country like Malaysia which still mostly exports primary goods will see partner countries enjoy our primary resources at much lower prices, thereby killing our local intermediate producers like fittings and furniture, palm oil refiners or food manufacturers.

I will not be exaggerating to say that this sounds suspiciously similar to the days of our colonial masters extracting Malaya dry of its natural resources!

Trade and the FDI myth

Back to trade itself, it has always been expected that the main benefits of signing an FTA with the US will be reflected through higher gains in trade benefits.

How is it then that even in the case of a relatively stronger economy such as Singapore, trade deficit had only widened from US$1.4 billion in 2003 when they signed the agreement, to US$4.3 billion in 2004 and US$6.9 billion in 2006 to US$10.5 billion in 2012?

Furthermore, no evidence of increased long-term quality investments and FDI were found in bilateral trade agreements, according to a United Nations report.

While trade diversion is a valid concern, the loss of incomes and benefits from trade diversion as a result of opting out of TPPA, must be determinedly greater than the various losses and costs that the TPPA entails to the larger economy.

Global protests against US FTA

It is not uncommon for nations worldwide to protest against FTAs with America. In Guatemala, two died protesting, and the people of Guatemala brought the government to court claiming that the FTA would go against at least 130 Acts in the Guatemalan constitution.

NONE In Ecuador, emergency had to be declared due to massive demonstrations. Chief negotiators in Thailand and Colombia also resigned from their positions in protest.

In South Korea, a protestor burnt himself to death in a show of protest against an FTA that it had with the US, which was only passed by Parliament after the ruling government had effectively locked up the opposition.

Countries like Argentina, Bolivia, Brazil, Paraguay, Uruguay, Venezuela, South Africa, Botswana, Lesotho, Namibia and Swaziland had also previously engaged in negotiations with America for an FTA, but they were never signed.

In Malaysia, the Third World Network (TWN) and the Consumers Association of Penang (CAP) have been at the forefront of engaging with US-Malaysia FTA issues since 2008, and have continued to do so with the TPPA.

Notable efforts have surfaced again lately in light of the TPPA negotiations and the leaked chapters. June 6, 2013, MP Nurul Izzah issued a press statement questioning the secrecy of the TPPA negotiation and asked pertinent questions; whether Malaysia plans to trade its sovereignty for free trade.

She continued to exert pressure from the Pakatan Rakyat which led to the setting up of a parliamentary caucus and increased engagement from Miti.

Simultaneously, momentum continues to build up with NGOs such as Blindspot, Mtem, MAC, MTUC, GBM, Ikram continuously engaging in forums and public awareness efforts.

These efforts encourage the public to demand engagement with the government in the negotiations. Other high-profile figures like Dr Mahathir Mohamad and Liow Tiong Lai also openly expressed opposition to the TPPA further fuelling efforts for public to engage in the issue.

Bantah TPPA (The coalition against TPPA)

Bantah TPPA is a coalition of 52 non-governmental organisations and 7 coalition councils formed with the aim of raising the people's awareness with regards to the TPPA in a sincere effort to ensure Malaysia gets the best out of it.

Our view is that the TPPA is straddled between the hopes of a relatively small circle of multinational corporations, whose commercial interests stand to benefit the most from the proposals, and the fears of civil society organisations representing the people of all 12 TPPA countries.

In fact, the TPPA is neither about fair trade nor even about free trade alone, since it seeks to lock in the monopolistic position of big corporations over their industries.

It is about ensuring the protection and prioritisation of corporate interests above those of public welfare, safety and the socio-economic interests of less affluent economies than the obvious economic master here, which is America.

We note that America is assisted by a special advisory committee of 1,000 industry experts. We demand the same for Malaysia.

A covet UNDP study is insufficient to ensure the public that our livelihoods and that of our future generations are not under threat.

Given the track record, Malaysia is not exactly a master at negotiations, having lost Block L and M, a skewed water agreement with Singapore, Batu Puteh island to name a few. Negotiators from Miti alone cannot decide the fate of Malaysia.

Ultimately, Bantah TPPA demands that the Malaysian government suspend or pull out its involvement in the TPPA negotiations unless and until, an impartial and comprehensive cost-and-benefit-analysis and a comparative advantage study are carried out, disclosed and publicly debated by all stakeholders in Malaysia, that the texts are examined, scrutinised and assessed by parliament to rectify the TPPA as negotiated is indeed in Malaysia's favour and interests, that the concerns are seen to have been incorporated into Malaysia's positions and proposals for the TPPA; and that a popular referendum is held to determine to what extent Malaysians support their government signing and ratifying the TPPA.

We demand that the government adopt a transparent stance in this and for the voices of the various stakeholders among Malaysians are considered in this negotiation round.

Or else, pull out from TPPA negotiations in an absolute manner. A textbook outline of the benefits of free trade will not suffice; the TPPA may be a free trade agreement in form, but it is an imperialistic regulatory agreement in substance.

Attention and empathy is needed from civil society itself. Academics, industry experts, practitioners and even lay people who are concerned about the future of Malaysia must search, aim to understand research, speak out and write to contribute to current efforts to demanding the best out of our negotiations. Else, we really should be bidding our farewell to America and run for the door.

Yesterday: Trans Pacific Partnership Agreement - why Bantah?

ANAS ALAM FAIZLI is an oil and gas professional. He is pursuing a post-graduate doctorate, co-founder of Blindspot and Bantah TPPA and tweets at @aafaizli.