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KUALA LUMPUR: The Malaysian Trades Union Congress (MTUC) has called on the government not to endorse the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
MTUC secretary-general J. Solomon said this is irrespective of the position taken by the previous administration on the free trade agreement.
He said although Senior International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali has gone to great lengths to point out that the previous Pakatan Harapan government had agreed to endorse the ratification of the CPTPP on Sept 5, 2018, the pact’s leaders have claimed subsequent deliberations showed that Cabinet then had second thoughts about the decision.
MTUC, Solomon said, does not wish to get caught in any political spat between the previous and present governments, but urges the Perikatan Nasional government not to endorse joining the CPTPP as it poses significant threats to workers’ rights and puts a large number of jobs at risk under the guise of free trade.
“MTUC feels the government must not ignore the fact that CPTPP lacks effective protection for workers’ rights and may well also result in the removal of other social, environmental and safety protections in place now.
“We find that the CPTPP provides member countries with a lot of latitudes to manoeuvre other nations in the group (TPP) into removing important legislation on workers’ welfare and rights under the pretext of reducing tariff barriers and championing free trade,” Solomon said in a statement, today.
He said the MTUC and trade unions around the world had noted that the CPTPP, which only benefits major corporations, does not contain mechanisms to monitor member countries’ adherence to core International Labour Organisation (ILO) standards and conventions.
It also does not have any provisions to ensure that violations of ILO standards are penalised, he added.
Furthermore, Solomon said, the CPTPP labour chapter also narrows the number of claims that can be taken against signatories for abuses of workers’ rights, as it says violations must be “in a manner affecting trade.”
“Similar agreements in other parts of the world show that almost always, no action is taken against perpetrators of such abuses,” he said.
Solomon said the infamous Investor-State Dispute Settlement (ISDS) in the CPTPP allows foreign investors to sue governments for regulations or actions that threaten their ability to make profits.
He added that similar mechanisms were used in the past to challenge minimum wage laws as well as other rules that affect workers, such as those on health and safety.
“The ISDS featured in the CPTPP clearly poses a serious threat to the livelihood and welfare of workers in Malaysia. Corporations could deem unfair any change of policy that improves workers’ rights and conditions if they see it as a violation of their ‘legitimate expectations’, i.e. their expected profits. The expansive reach of the ISDS system allows multinational corporations to sue governments in secretive tribunals outside of the national legal system for unlimited taxpayer money,” he alleged.
Solomon added that the CPTPP would also likely result in job losses in some sectors due to increased imports from member countries.
“The MTUC and unions worldwide are concerned that workers who lose jobs will be forced to take up new employment on precarious terms with low pay in the informal sector,” he said.
He also said Azmin had not disputed the Economic Planning Unit’s (EPU) findings as revealed by his predecessor, Datuk Darell Leiking, that by joining the CPTPP, Malaysian imports would spike by RM10 billion against an increase of RM516 million in exports, resulting in Malaysia’s trade balance dipping by RM9.6 billion annually.
“Azmin has not presented a convincing case that would suggest it is in the interest of our workers, our economy and our society to join CPTPP,” Solomon said.
He added that the MTUC is also concerned that the CPTPP would open up public procurement markets, restrict
ing the government’s ability to support local businesses that recognise trade unions’ or pay living wages.
“It is patently clear that the CPTPP is not really about fair, free trade between the member countries. In fact, only a handful of the chapters deal directly on trade. Many of the chapters in the agreement are framed to benefit major corporations rather than the people,” he said.
Solomon said if the PN government chooses to endorse the ratification of the CPTPP, the government should ensure that any law or amendment it introduces does not have negative consequences for foreign investors, even though it benefits workers and the people.
Otherwise, he believes that this would raise serious questions about the government’s ability to act freely in the interest of the rakyat.
He added that there are clearly more than enough compelling reasons why the government should not endorse the ratification of the CPTPP unless member countries relent on major provisions that would adversely affect the economy and the livelihood as well as well-being of workers in the country.
Source: https://www.nst.com.my/news/nation/2020/08/614958/mtuc-urges-govt-not-endorse-cptpp
Address: Wisma MTUC,10-5, Jalan USJ 9/5T, 47620 Subang Jaya,Selangor | Tel: 03-80242953 | Fax: 03-80243225 | Email: sgmtuc@gmail.com.com