GEORGE TOWN, Oct 7 — The Consumers Association of Penang (CAP) likens the Trans-Pacific Partnership Agreement (TPPA) to a “ticking time-bomb” as it gives foreign corporations the power to challenge governments and their policies for the people. 

Its president, S.M. Mohamed Idris, said although much of the agreement was still under wraps, enough was known about it for CAP to be concerned about the government’s openness to it. 

“The TPPA is a ticking time-bomb because it cements the unfair Investor-State Dispute Settlement (ISDS) mechanism that enables foreign corporations to sue governments for protecting public interest and the environment,” he said in a statement.  

“Many government policies that need to address public health, environment and global warming issues will be subject to suits brought before biased and undemocratic international investment tribunals.”

Idris said TPPA also has chapters on state-owned enterprises and government procurement, which would seriously curb the ability of governments to continue to provide advantage to domestic companies and this would be damaging on the socio-economic fabric of the country.  

“Even in terms of trade, Malaysia might not gain in net terms as its tariffs are generally higher than its TPPA partners, particularly the US and Singapore.  Thus, Malaysia has to reduce tariffs by a higher rate than others, and this will lead to an increase in imports that will offset the expected increase in our exports resulting from the TPPA.

“According to one study, Malaysia’s trade balance could worsen by RM5 to RM6 billion a year. In other words, the TPPA would make Malaysia worse off even in the chapter (trade in goods) where Malaysia is supposed to benefit enough to outweigh all the costs in the rest of the TPPA,” he said.  Idris said the government must also release the cost and benefit analyses of the deal.  

“To our dismay, the government has yet to announce what is the compelling reason and justification for this TPPA deal, which is not all about trade,” he said. 

“It is also crucial for citizens to raise concerns about the TPPA and to call on the government not to sign the agreement, as it would devastate public health, the environment, jobs and our sovereignty.”