TPPA debate will continue although concluded

Video: http://t.cn/RyEoAkLvhttp://english.cntv.cn/2015/10/09/VIDE1444344482352696.shtml



FINALLY, the negotiations on the Trans-Pacific Partnership Agreement have concluded. But that’s not the end of the story.

It will be many more days before the text is made public. Until then, there will still be so many questions unanswered.

Enough is known, from media reports and some leaked texts and analyses, to make some preliminary comments.

Firstly, trade is only one part of the TPPA. As important, or more important, are other issues including investment, intellectual property, government procurement, state-owned enterprises, labour and environment.

These other issues are at the heart of the country’s socio-economic structures and policies.

On these issues, the TPPA may have problematic elements for Malaysia. The Malaysian negotiating team has been fighting to lessen the adverse impacts of the main proposals.

It says it won concessions. But what these are, whether they are enough, and the effects are still not clear. What is clear is that “policy space” (a country’s freedom to formulate its own policies) would be very significantly narrowed as a result of the TPPA.

On intellectual property, the blow is perhaps the most obvious. Most patents filed in Malaysia are owned by foreigners. So when patent laws are made stronger, it will benefit foreigners who are the patent holders.

The enhanced monopoly given to patent holders will have adverse effects on Malaysian consumers who will have to pay higher prices and Malaysian companies which cannot make or import generic versions during the patent term.

The renowned medical group, Doctors Without Borders (MSF), condemned the TPPA as the “worst trade agreement for access to medicines”. Patients and treatment providers in developing countries will be the TPPA’s big losers as it will raise the prices of medicines by extending the monopolies enjoyed by the big drug companies and further delaying price-reducing generic competition, according to MSF.

The term of the patent may be lengthened (by adding time taken to register the medicine or approve the patent). Data exclusivity is to be granted for five years (or possibly for more than that, for the new drugs known as biologics), during which the generic companies are not allowed to rely on the test data of the originator firm.

On investment, the TPPA opens the road for foreign companies to be treated as well or better than locals, thus giving them rights of entry and ownership, and free transfer of funds, while prohibiting the host state from imposing performance requirements such as local content, technology transfer and joint ventures.

The TPPA also contains the investor-state dispute settlement system (ISDS), which enables foreign investors to sue the Government in an international tribunal.

Changes in government policies can lead to claims that this is unfair treatment and the foreign investor can ask for compensation for loss of expected future profits.

According to press reports, the TPPA has some safeguards such as diluting the ability of companies to make frivolous claims. Exactly what these are, is not known. The ISDS in any case remains intact as a powerful tool for foreign investors and puts Malaysia in a defensive position.

On government procurement, the space that Malaysia has had to make policies on how the Government does its procurement will be curbed. The preferences given to locals will now give way to national treatment for foreign companies.

Malaysia has been negotiating for more exceptions in terms of the “threshold” of level of expenditure or project value where preferences for locals can still be given, and an exception for bumiputra policy. Details of the final agreement are still not known.

On state-owned enterprises (SOEs), the TPPA will impose disciplines and rules on how these SOEs operate, the subsidies they can or cannot get, and their need to be non-discriminatory when purchasing materials (they cannot give preference to local companies).

The advocates of the SOE chapter seem to want to curb the advantages that SOEs may have, and enable the foreign companies to more effectively compete and take some of their market share. Malaysia has also been fighting for exceptions for some of its SOEs. The final outcome of this is not yet known.

Investment policy, government procurement, SOEs and access to medicines are right at the heart of Malaysia’s political economy and socio-economic structures.

Policies that have been at the centre of the country’s economic and political development have now to be defended as exceptions and flexibilities, and there is a limit to what the other TPPA partners will accept.

The chapters on these issues are bitter pills to swallow and the debate will continue on whether they are worth swallowing.

The direct trade aspects of the TPPA should have such enormous benefit that they more than offset the disadvantages of the other issues. Otherwise, why join the TPPA?

However, Malaysia’s tariffs are on average higher than those of the United States, the main country with whom we do not yet have a Free Trade Agreement.

If tariffs go to zero through the TPPA, Malaysia will thus have to cut its tariffs by more than the US. Whilst we may gain extra exports through the TPPA, we will also have to import more. There is no guarantee that the TPPA will lead to a better trade balance, and there could be an opposite result.

The debate on the TPPA will intensify now that the negotiations have ended. The text should be made available as soon as possible, so that the discussions can be based on the agreement itself. After the TPPA, it will take another two years for the agreement to be ratified and come into force.

Thus, the TPPA is not a “done deal” and the real debate may only be beginning now. It is unfortunate that till now the text is not available.

BY MARTIN KHOR

Martin Khor (director@southcentre.org) is executive director of the South Centre. The views expressed here are entirely his own.

Related:

Successful global trade agreements require China's participation

The TPP is not an opportunity China cannot miss. Any global trade framework will not be perfect without China's participation. We have nothing to be insecure about. 

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TPPA a bad deal for Malaysia, can't isolate China, only trade growth defines merits of TPP

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FireEye threats of cyber espionage loom with the coming 26th Asean Summit in Malaysia

Photo by hfuchs/Relaxnews.

PETALING JAYA: Regional government and military officials, businessmen and journalists involved with the coming 26th Asean Summit in Kuala Lumpur could be among the targets of a recently discovered cyber espionage group, claims an Internet security firm.

 

https://www.fireeye.com/

FireEye, which exposed the presence of the APT30 group of hackers snooping on governments and businesses, including those in South-East Asia, said some of its previous attacks had been launched before key Asean meetings.

“Based on previous experience, I believe that this group and possibly others will try to use that meeting (26th Asean Summit) as part of their ruse to potentially target businesses and governments in the region,” said Bryce Boland, FireEye’s chief technology officer for Asia Pacific in a telephone interview here yesterday.

In its report, FireEye, which is based in the United States, said APT30 had a distinct interest in organisations and governments associated with Asean.

The group had released a malware in the run-up to the 18th Asean Summit in Jakarta in 2011 and the Asean-India commemorative Summit in 2012.

One of the domain names it used to command its malware was aseanm.com

AFP had reported that the APT30 group was “most likely sponsored by China” and that there was no immediate reaction from the Chinese government, which had always denied allegations of cyber espionage.

The two-day Asean Summit from April 26 is expected to discuss various issues, including maritime disputes between China and Brunei, Malaysia, Vietnam and the Philippines in the South China Sea, and the formation of a single market and production base in the region.

“The hackers are after intelligence and information, primarily about political changes, political positions, especially over disputed territories, border disputes and trade negotiations,” said Boland.

“We have also seen that when they target journalists, they are specifically looking for information in relation to understanding concerns about the legitimacy of the PRC (People’s Republic of China),” he said.

The group has also attacked businesses to steal information on deals, manufacturing plans and intellectual property such as schematic diagrams.

According to the FireEye report, Malaysia is one of seven countries with targets hit by the group, which has operated largely undetected for the past 10 years.

Others are Thailand, Vietnam, South Korea, Saudi Arabia, India and the United States.

Boland said the group mostly attacked their targets via spear phishing emails with attachments that appeared to be from a known contact but were in reality sent by the hackers.

The attachment, which can be in the form of a document with an Asean-related title, will contain a customised malware that is activated the moment that it is opened.

It allows the attacker to gain control of the victim’s computer and retrieve information from it.

Boland advised computer users not to open suspicious e-mails.

“Businesses and governments should ensure that their IT infrastructure not only protects them from attacks but can detect the extent of damage done in the event of a successful hack.”

By Razak Ahmad The Star/Asia News Network


Related:

 FireEye: Cyber Security & Malware Protection

The best leaders are learners

One year ago, at a youth camp, a student who had been put in charge of his group confided in me that leading his team members wasn’t going as well as he had thought it would. “I’m just not cut out to be a leader,” he said, as he related to me what he thought a leader should have, which he didn’t: humour, confidence, wisdom and courage.

My reply to him, as one still understanding the ropes of what it truly means to lead was, “all these can be learnt, if you put your heart to it”.

It is said that there are approximately 50,000 books on leadership that are published annually – and this number may well be a conservative estimate – but if there is one indication that there is no final “destination” in this journey of becoming a leader, it is the countless number of resources that teach us how to better develop our awareness and management of ourselves and others.

Leadership is a relational endeavour; one cannot claim to be a leader without being able to inspire an action or a reaction in others. And because relationships are complex, one can only lead to the extent that he or she learns.

On the surface, it is painfully obvious that learning is imperative for any human enterprise – but I’d argue that in the long run, learning qualifies you to lead more than anything else (beyond promotions, positions, placement and power).

Here are three reasons why:

1 Learning equalises the years

How often have you heard the Chinese adage (often spoken by the elderly to the young), “I eat more salt than you eat rice”?

What is it about being “older” that makes one a wiser and better decision-maker? I’m convinced that the difference is not a matter of “years”, but a matter of “experience”.

We learn from our experiences, and our past outcomes that resulted in both positive and negative actions inform us as we negotiate between present choices.

But if experiences make us wiser, how do we attain more “experience”? Is “experience” purely a byproduct of the passing years, or can we, in the words of Sir Isaac Newton, see further into the future “by standing on the shoulders of giants”?

When we capitalise on the learnings and lessons of others and apply them in our lives, we are able to short-circuit the common bind of “years equals to experience” and accelerate our growth without wasting the time others have wasted.

Great leaders often ask themselves, “How can I avoid making the same mistakes, or how can I replicate others’ successes and take them further?”

2 Learning keeps you humble

Learning and humility feed off each other. On the other hand, the antithesis of humility, which is pride, has the sinister ability to deceive anyone into believing that he or she has “arrived”, that there is no need to adapt or change further, because he or she is superior and above reproach.

In contrast, great leaders are often the most humble people who are secure in themselves and do not see the need to put others down to elevate themselves.

John F. Kennedy once said “Leadership and learning are indispensable to each other”.

Interestingly, most US Presidents were avid readers who invested much of their time in learning, despite their busy schedules.

It is said that Theodore Roosevelt read two books a day, while Abraham Lincoln, who had only one year of formal education, attributed his successful political career to his habit of reading.

A strong learning posture allows you to see from different perspectives, live in the experiences of others, and most importantly, empathise with other points-of-view.

It is only when a person is an avid learner that he or she is continually challenged in his or her current views, and thus able to grow in convictions. It is only when a cup is empty, that it can be filled.

Maintaining humility allows us to be intellectually curious – and curiosity always precedes discovery and creativity.

3 Learning enables you to give

Somewhere during my college years, an epiphany occurred to me: How much can I learn and grow, if I were to dedicate all my transit and waiting moments to learning something new?

In my frustration of waiting and chasing for buses to get to college, I found a treasure chest.

I had realised that an average Kuala Lumpur/Klang Valley resident would spend approximately 10 to 15 hours per week travelling, either by inching through heavy traffic or waiting at bus stops and light rail transit (LRT) stations, and what a waste of time it would be if all that time was given to staring into space or letting one’s thoughts run idle.

I then made a concrete decision to listen to podcasts, audio books (when I would be driving) or to read (when I was waiting for the bus or LRT), in order to redeem that precious time.

I have since listened to over 700 hours of podcasts on topics related to public speaking, general knowledge, story-telling, leadership, faith and personal development.

My greatest learning moments are no longer in the classroom, but in my car, when I am alone and can learn something new.

During the course of the last two years, as a teacher in a high-needs school and a church leader, these moments of learning and reflection allowed me to pass on what I learnt to my students and congregation.

Those opportunities gave me great pleasure, as I was communicating to others what I had learnt and internalised for myself. I never felt “burnt out” because the stream of learning was always flowing.

Leadership may have many faces, but all leaders have the same outstretched hand of giving. And we can only give from what we have learnt. The good news is that leadership can be learnt – if we put our hearts to it.

Contributed by Abel Cheah

Abel Cheah is associate manager in the Talent Acquisition team at Teach For Malaysia. He believes that leadership is something that is nurtured and cultivated. If you are interested in listening to podcasts, he highly recommends Umano (an app that narrates articles). He believes that the best leaders are great lovers of learning. You can get in touch with him at editor@leaderonomics.com