The Ministry of International Trade and Industry (Miti) tried hard to defend its stand at the World Trade Organisation (WTO) negotiations to slash subsidies and tariffs in Parliament today.

The on-going WTO negotiations, among others, involved the abolishment of agricultural export subsidies, reduction in non-agricultural tariffs and a progressive liberalisation certain services sectors.

"Malaysia will continue to participate actively in WTO negotiations to ensure the country's interests are advanced through the liberalisation of agricultural and non-agricultural products and services in line with the flexibility given to developing nations," said Miti parliamentary secretary Dr Tan Yee Kew when answering a question on the matter from Abdul Rahim Bakri (BN-Kudat).

Her answer, however, elicited a barrage of questions from both sides of the House.

Parliamentary opposition leader Lim Kit Siang (DAP - Ipoh Timur) demanded to know whether Miti's agreement to reduce tariffs on non-agricultural products would affect Malaysian manufacturers and workers.

"Wouldn't this negatively affect Malaysia whereby factories will end up closing down and workers losing their jobs? Are there measurements to (offset) such adverse effects? Have there been consultations with employers or workers on this?" he asked.

Lim also asked whether Malaysian rice farmers had been prepared for the impact of the decision reached at WTO to abolish all export subsidies by the end 2013.

Earlier, Abdul Rahim questioned why neither the Association of Southeast Asian Nations (Asean) or the Organisation of Islamic Conference (OIC) have their own lobbying blocs at the WTO negotiations.

He said that developed nations have ensured their interests were represented by blocs such as G10, G20 and G23.

"Why isn't there an Asean or OIC bloc in these negotiations? Are these countries lacking the commitment or consensus to (collectively) negotiate in the WTO?" he asked.

Will Miti consult Parliament?

In view of the significant implications of agreements reached at the WTO, Abdul Rahim also questioned whether the ministry would defer its decisions to Parliament.

"Are we planning to refer any negotiation or commitment made at the WTO, at the least, to inform Parliament and obtain its approval? The effects of the negotiations will have large implications to the country," said Abdul Rahim.

In response to Abdul Rahim's questions, Tan said 'special safeguard mechanism' laws to protect sectors within the nation's economy would be proposed and brought to Parliament for discussion.

However, Tan said she did not feel that "at this stage" the ministry would bring its other decisions reached at the WTO negotiations to Parliament.

She also insisted that negotiations between WTO countries were based on the principle of mutual benefit and that "the government always took into consideration the interests of small holders, including rice farmers."

"Although there are bloc interests that seek to gain larger interests in the WTO negotiations, this does not mean we lose in the said negotiations," she said.

She went on to speak of protection for factory workers in developing countries, that developed nations were slapped with larger reduction of tariffs than developing countries.

Tan also said there were provisions for developing countries to specify 'sensitive products' based on national food security, among others.

"There are mechanisms to provide protection to developing nations and (their) factories, one of which is the 'special safeguard mechanism', whereby a nation can limit an import or raise its tariffs if an increase in such imports will lead to losses to local producers," she said.