Singapore opening backdoor to Afta, Dr M warns
K KabilanPublished: Feb 26, 2001 2:28 AM | Updated: Jan 29, 2008 10:21 AM
Singapore's negotiations for separate free trade agreements with various countries could result in the other countries gaining a back-door entry into the Asean Free Trade Area (Afta), said Prime Minister Dr Mahathir Mohamad today.
Singapore's negotiations for separate free trade agreements with various countries could result in the other countries gaining a back-door entry into the Asean Free Trade Area (Afta), said Prime Minister Dr Mahathir Mohamad today.
"Singapore's attempt is a worrisome thing. In Afta, we accept anything that has a 40 percent local content. These will be regarded as national products," said Mahathir at a press conference after opening an international conference on globalisation in Kuala Lumpur.
He added that the deals with Singapore will allow other countries a free access to the markets of Asean member states.
Last Friday, Singapore and Australia ended a first round of talks on a free trade agreement and said they are committed to reach a deal this year.
Singapore has also recently concluded a similar partnership with New Zealand. It is also pursuing free trade deals with several other countries including Japan, the United States, Canada, Mexico and the European Union.
Policy defended
Mahathir said that these other countries could easily bring their partly-completed products and assemble them in Singapore, resulting them in being classified as Singaporean products.
"We have to watch this very carefully because this can be a back-door entry into Afta," Mahathir said.
Afta aims to cut tariffs by 2003 to between zero and five percent for more developed members of Asean and a later date for the poorer economies of the 10-member grouping.
Singapore's separate agreements have drawn criticism from other Asean countries, prompting Singapore Prime Minister Goh Chok Tong to defend the republic's policy by stating that "those who can run faster should run faster" and "they should not be restrained by those who don't want to run at all."
Digital divide
Earlier Mahathir told the conference participants in a question and answer session that the digital divide will have a bad impact on poorer countries if it was not bridged and that technology know-how should be made available to the poorer countries cheaply.
The digital divide, which has become a concern of the 21st century, describes the gap that excludes the world's poor from the information revolution which provides powerful computers, premier telephone service and fast Internet links.
Those on the less fortunate side of the divide have less opportunity to take part in a new information-based economy where many jobs will be related to computers. It also means a much smaller chance for them to take part in education, training, shopping, entertainment and communications opportunities available online.
"The rich countries should provide new technology cheap or even free to the poorer countries to enable them to overcome the digital divide," said Mahathir.
Higher rates
He added that the poorer countries were in a less favourable position in facing competition from the richer nations who have the advantage of technological skills and knowledge.
He said the richer nations could afford to take advantage of their digital knowledge to increase their production capacity and quality while poorer countries were still competing using their old ways.
Mahathir suggested that one way of overcoming the digital divide would be to charge the richer nations a higher rate for their products and using the extra money to help boost the information technology revolution in poorer countries.
"Singapore's attempt is a worrisome thing. In Afta, we accept anything that has a 40 percent local content. These will be regarded as national products," said Mahathir at a press conference after opening an international conference on globalisation in Kuala Lumpur.
He added that the deals with Singapore will allow other countries a free access to the markets of Asean member states.
Last Friday, Singapore and Australia ended a first round of talks on a free trade agreement and said they are committed to reach a deal this year.
Singapore has also recently concluded a similar partnership with New Zealand. It is also pursuing free trade deals with several other countries including Japan, the United States, Canada, Mexico and the European Union.
Policy defended
Mahathir said that these other countries could easily bring their partly-completed products and assemble them in Singapore, resulting them in being classified as Singaporean products.
"We have to watch this very carefully because this can be a back-door entry into Afta," Mahathir said.
Afta aims to cut tariffs by 2003 to between zero and five percent for more developed members of Asean and a later date for the poorer economies of the 10-member grouping.
Singapore's separate agreements have drawn criticism from other Asean countries, prompting Singapore Prime Minister Goh Chok Tong to defend the republic's policy by stating that "those who can run faster should run faster" and "they should not be restrained by those who don't want to run at all."
Digital divide
Earlier Mahathir told the conference participants in a question and answer session that the digital divide will have a bad impact on poorer countries if it was not bridged and that technology know-how should be made available to the poorer countries cheaply.
The digital divide, which has become a concern of the 21st century, describes the gap that excludes the world's poor from the information revolution which provides powerful computers, premier telephone service and fast Internet links.
Those on the less fortunate side of the divide have less opportunity to take part in a new information-based economy where many jobs will be related to computers. It also means a much smaller chance for them to take part in education, training, shopping, entertainment and communications opportunities available online.
"The rich countries should provide new technology cheap or even free to the poorer countries to enable them to overcome the digital divide," said Mahathir.
Higher rates
He added that the poorer countries were in a less favourable position in facing competition from the richer nations who have the advantage of technological skills and knowledge.
He said the richer nations could afford to take advantage of their digital knowledge to increase their production capacity and quality while poorer countries were still competing using their old ways.
Mahathir suggested that one way of overcoming the digital divide would be to charge the richer nations a higher rate for their products and using the extra money to help boost the information technology revolution in poorer countries.
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