If the bauxite mine in Kuantan were owned by a foreign corporation, Malaysia would be sued if the Trans-Pacific Partnership Agreement (TPPA) is signed.

Universiti Malaya professor Gurdial Singh Nijar posed this hypothetical scenario at the TPPA Summit 2016 today.

“If the bauxite mining is done by a foreign corporation, they will sue us under the TPPA,” said Gurdial in his speech at the summit held in Shah Alam today.

Citing Lynas Corporation - which is an Australian rare earths mining company - Gurdial questioned whether the government would be in the position to impose sanctions on the company after the TPPA is signed.

“Will our government be in the position to tell them ‘look at our people’s lives, (their) healths are affected, we want to stop you’.

“If you (the government) can answer this question, by saying ‘yes, we can do that’, then some of us will be happy to withdraw our opposition,” he said.

Nevertheless, under the TPPA, conditions under which the investment was made in the country cannot be changed.

“During that time, like Lynas, we have certain laws that allow them to do a variety of things, we cannot change that.

“Because if we change that they will complain that their expected profit has been affected,” he said.

The company, therefore, would bring the case to a special penal of private lawyers and they will be the ones deciding on the case.

“The foreign corporation can sue our government, (but) our government cannot sue the foreign corporation,” he lamented.

Natural Resources and Environment Minister Wan Junaidi Tuanku Jaafar and Pahang Menteri Besar Adnan Yaakob had last Wednesday announced a three-month moratorium on mining in Kuantan starting from Jan 15 to facilitate the clearing of existing stockpiles.

More laws needed to satisfy the US?

Meanwhile, fellow panellist Chee Yoke Ling - who is a lawyer from Third World Network - said at least 20 laws from the federal government would have to be changed to be in line with provisions under the TPPA.

“Every step of what we do will be examined by the United States,” she said.

Pointing out how Malaysia imports various books into the country, Chee cited Australia when it signed a Free Trade Agreement (FTA) with the US.

“The US was not satisfied, they forced Australia to basically make a new law.

“The Australian government had to call a special parliamentary session at night to pass the copyright law that would satisfy the US,” she noted.

Malaysia - together with 11 other countries - agreed to the TPPA during negotiations which concluded in Atlanta, the United States.

Critics to the agreement fear damaging industry-state dispute settlements, as well as a higher cost of medicine, among others.

A special sitting for the TPPA is expected to be held in Parliament come Jan 26.