Malaysia has ruled out any possibility that the country would agree to begin negotiations on contentious competition policies at the current World Trade Organisations (WTO) meet in Cancun, Mexico.

"Malaysia will not agree to begin negotiation on any of these issues, and suggests the clarification process be continued beyond Cancun," said Minister of International Trade and Industry Rafidah Aziz during her speech to the fifth WTO Ministerial Conference.

According to her, the issues relating to competition policy remain contentious and are opposed to by most WTO members, particularly developing nations.

"In Doha, we decided that negotiations on these issues can only commence if there is explicit consensus - and clearly up to now, there is none. It is obvious that proponents pushing to include these issues for negotiations have not been able to convince other members of the utility of WTO rules in these areas," she said.

Malaysia was joined by 16 other nations in rejecting inclusion of competition laws in WTO rules. As the WTO requires unanimity, opposition by any country or group of countries can stall negotiations.

The initiative to introduce the new policy has been strongly opposed by developing countries who fear that domestic enterprises may face stiff competition by foreign firms and powerful trans-national companies.

The WTO conference is scheduled to conclude today after four days of intense negotiations among members split along the developed and developing country divide.

Trade ministers from 146 countries are meeting in an attempt to work out unresolved issues over developed countries' extensive farm subsidies and to discuss whether there would be a start to negotiations on 'new issues' involving new sets of global trade rules.

Vocal opposition

Rafidah also deplored the continued impasse over negotiations on agriculture matters, particularly over contentious barriers on trade by developed countries.

"High bound tariffs must be reduced to a more reasonable level; trade distorting domestic support, and export subsidies, by developed members, must be eliminated; and developing countries must be allowed to use export credit, on reasonable terms to promote their exports," she stressed.

Rafidah said Malaysia is also supportive of a non-linear approach on non-agriculture market access to accommodate the developmental needs of developing countries.

"Malaysia cannot accept any proposal for a sectoral approach, in respect of market access, for non-agricultural products, particularly if it involves the mandatory participation by all."

A vocal participant at WTO trade talks, Rafidah also expressed opposition to "any attempt to divide and segregate amongst developing countries".

Her assertion came in the light of reports that the US government had been actively cajoling and bullying poor nations into leaving the G-21, a leading group of countries demanding for complete abolition of barriers which lock developing countries out of agriculture markets in developed nations.

The accusations were, however, denied by the Americans.

Deadly protest

Malaysia has long been a critic of "undemocratic" decision-making processes in the WTO.

In April last year, Malaysia, together with 15 developing countries, submitted a joint communique to the WTO calling for transparent, inclusive and predictable consultations.

Meanwhile, other developments at the Cancun talks included demands by the G-21, which includes China, Brazil and India, to push for major changes to US and European agriculture policies.

African nations have also called for the elimination of US cotton subsidies which has severely affected competitiveness of African growers.

The WTO meet was again marred by strong protests by anti-globalisation campaigners, one of whom - a South Korean farmer - died after stabbing himself to demonstrate protest over unfair trade rules.