Categories
Economics Politics & government

[1122] Of lefties’ unconvicing argument against FTA

Opponents to the possible Malaysia-US FTA come from various backgrounds and some they have expressed legitimate concerns against the FTA. When I met Ronnie Liu of DAP several months ago, he expressed transparency as a reason to object the FTA. I could accept transparency as as reason but yet, I am convinced that transparency is not the main reason behind DAP’s objection to FTA. This is because transparency was only mentioned after I demonstrated an inconsistency in DAP’s stance in a wider context.

There are many arguments against the FTA that are simply based on simple misunderstanding of economic concepts. I will not touch on that simply however. What I am interested in discussing is the inconsistent.

DAP opposes the Bumiputra policy, in particular the NEP, because it is discriminatory. I myself am against the Bumiputra policy due to how it prevents the market from working freely. But this is not about me.

Proponents of the policy cite that the Bumiputra and really, the Malays, need time to build up its capacity to compete against other economically superior ethnic groups. Hence, the protection and privileges given to the Malays. It is common for the other side, not necessarily DAP but the lefties in general, to come back and say such protection and privileges do not build up the competency the Bumiputa needs to compete against others; it only encourages complacency among the Bumiputra.

Despite not buying into the argument for Bumiputra policy as well as stating how the policy is not helping, many of the same lefties employ the same argument used by the proponent of Bumiputra policy to support protectionism and oppose the FTA. This group argues that Malaysia needs time to build up its capacity to compete against other economically superior countries. When proponents of the FTA cites that protectionism does not encourage Malaysia to become competitive but instead, sowing complacency, they shrug it off, seemingly implying that such inconsistency as a minor inconvenient.

In the case of Ronnie Liu, he ran away from the subject and cited transparency instead.

Lefties will need to sort that out if they are to convince others to oppose the Malaysia-US FTA. Else, lefties that oppose both the Bumiputra policy and the FTA are giving the supporters of Bumiputra policy a leeway. Perhaps, stripping the lefties that moral authority to talk about one issue or the other.

Categories
Economics

[1085] Of the US is no match for the NEP

Under pressure to secure a free trade deal with Malaysia, the US is bowing to Malaysian demands:

MALAYSIA and the US have agreed to take contentious issues “off the table” in their ongoing (free trade agreement) FTA negotiations, International Trade and Industry Minister Datuk Seri Rafidah Aziz said.

What are those contentious issues?

“On areas like government procurement, New Economic Policy and our policies on restructuring, it is no go and they understand that.

I have blogged earlier on how Malaysia has time as a leverage. I do think Malaysia is utilizing that leverage to the fullest. Standing on higher ground while the US negotiators are running out of time, I could imagine Malaysia dictating the terms in a room somewhere in Sabah.

Nevertheless, I wish both sides would be more transparent and forthcoming to public questions. While I have an idea what the US is looking for, I could only speculate what Malaysia is demanding from the US without a way to verify it.

Even in the report, the US list is clear:

The Karambunai discussions had included elimination of tariffs, equity conditions in education and telecommunications and distributive trade.

The Malaysian list, on the other hand:

Rafidah said Malaysia made requests to the US in terms of market opening which would benefit the private sector.

It is so vague that it could mean anything under the sun.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — perhaps, I have underestimated the leverage Malaysia has. On Saturday, February 10 at The Star:

KOTA KINABALU: The March deadline is likely to pass without Malaysia and the United States striking a deal for a Free Trade Agreement (FTA).

US Assistant Trade Representative Barbara Weisel said it would be “very difficult” to conclude the talks within the deadline that the United States had set.

I hope we could get the FTA signed before it is too late. It is going to be tough to get an FTA after the expiry of Trade Promotion Authority because the Democrats are expressing economic nationalism stance.

Categories
Economics Liberty Politics & government

[1077] Of Malaysia-US FTA is under threat

With respect to the current negotiation on Malaysia-US FTA, chairman of the House Committee on Foreign Affairs, the Democrat Tom Lantos made the most unhelpful comment:

The recently-announced oil and gas deal between Iran and Malaysia is equally abhorrent. That is why today I am sending a letter to our trade representative, Susan Schwab, requesting that all negotiations between the United States and Malaysia on a free trade agreement be suspended until Malaysia renounces this proposed deal.

According to Bernama, “abhorrent” deal refers to this:

Abdullah was reacting to a statement made by US House of Representatives Foreign Affairs Committee chairman Tom Lantos who demanded that US President George W. Bush suspend all FTA negotiations with Malaysia, in protest over the US$16 billion (RM57.6 billion) deal signed last month between Malaysia’s SKS Group and the state-owned National Iranian Oil Company.

All this is on top the fact that negotiation is tough:

A proposed Malaysia-U.S. free trade pact may falter if negotiators fail to make firm progress in bridging differences at a fifth round of talks next week, a U.S. official warned on Wednesday.

Negotiators will meet again for a week starting Monday in Malaysia’s Sabah state on Borneo island, where they will seek a compromise over opening up of Malaysia’s services and government contracts – two key hurdles to a deal – said Deputy U.S. Trade Representative Karan Bhatia.

Labor and environmental issues are also holding up talks, he said.

Further at Forbes by Associated Press :

Malaysia has warned it will drop free trade talks with the United States if it is asked to scrap a multi-billion-dollar gas deal with Iran, a news report said Friday.

[…]

In an angry reaction, Trade Minister Rafidah Aziz told Washington to stay out of Malaysia’s affairs and warned the government will not bow to any threats, the Malay-language Utusan Malaysia reported

While I am very keen of the Malaysia-US FTA, I have to agree with Rafidah Aziz. No one shall dictate Malaysian relationship with Iran. Besides, that oil and gas cooperation is not a government-to-government dealing.

Malaysia must have the liberty to forge relationship with anybody. It is our liberty and in my priority list, liberty sits higher than an FTA.

Despite that, I urge both the Malaysian and the American negotiators to ignore Lantos and realize a closer relationship between the two countries. It is only through trade could we guarantee our prosperity. In Kant’s words, “the spirit of trade cannot coexist with war.

Further, what better way for Malaysia to get back at Lantos other than having a successful fair FTA?

Categories
Liberty Politics & government

[1027] Of turning a dictator into a martyr

Scattered sources according to CNN on TV have reported that Saddam Hussein has been executed by hanging:

BAGHDAD, Iraq (CNN) — Former Iraqi dictator Saddam Hussein has been executed, according to two Arabic language media outlets.

Hussein was hanged before dawn on Saturday in Iraq, at about 6 a.m. (10 p.m. Friday ET), the U.S.-backed Al-Hurra television reported.

Al-Arabiya reported that Barzan Hassan, Hussein’s half-brother, and Awad Bandar, former chief justice of the Revolutionary Court, were hanged after Hussein. All three were convicted of killings in the Iraqi town of Dujail nearly 25 years ago.

The odd thing about the execution is that, it turns a tyrant into a hero.

A lesson: without a fair trial, or at the very least the perception of a fair trial, any judgment passed by a court is invalid.

Regardless, I personally believe that mercy would have been a better example.

And how does the execution affect the situation in Iraq?

Given the circumstances, I doubt it is for the better.

Categories
History & heritage Politics & government

[1025] Of a tribute to Gerald Ford

Rest in peace, fellow Wolverine.