Trade barriers immoral, says think-tank
Published: Jan 23, 2007 8:37 PM | Updated: Jan 29, 2008 6:21 PM
The removal of trade barriers is not just an economically sound move for Malaysia, but a moral imperative, claims the London-based Malaysia Think Tank organisation in a translated report released today.
The Malaysia Think Tank says Malaysians should not be fooled into believing unfounded claims on FTAs made by protectionist groups with vested interests.
The removal of trade barriers is not just an economically sound move for Malaysia, but a moral imperative, claims the London-based Malaysia Think Tank organisation in a translated report released today.
The report in Bahasa Malaysia, entitled 'Just trade: The moral imperative of eliminating barriers to trade' argues that restriction of trade between peoples are immoral and undermines sustainable development.
Wan Saiful Wan Jan, director-general of Malaysia Think Tank said: "Removal of trade barriers is not just an economically sound move, it is also a moral obligation. We should not oppose trade liberalisation as long as the process is transparent and honest. Integrity of the process is the key".
Malaysian social and political activists have voiced opposition to the ongoing free trade agreement (FTA) talks between Malaysian and the US, claiming its implementation will lead to more economic woes for Malaysians.
Medicine prices, in particular, will rise along with job losses and the sidelining of local industries, they claim.
Wan Saiful, however, said that free trade was an initiative to be encouraged. "The debate over Malaysia's FTA negotiations has been marred by ridiculous claims by certain groups. We are publishing this report, which has been translated from English, to contribute to the public debate.
"Malaysians should know that free trade is inherently good. We should not be fooled into believing unfounded and scare-mongering claims made by protectionist groups with vested interests."
He said that liberalisation would allow for more choice and competition and those with low incomes would be able to choose between higher quality products at lower prices, or lower quality items at higher prices.
"Competition will drive down prices and we can better afford to buy what we want to buy. Continued protectionism is a way of maintaining artificially higher prices for inefficient production. Protectionism only victimises the poor in our country," said Wan Saiful.
'Winners and losers'
In the report, author Julian Morris, Visiting Professor at the University of Buckingham, says trade barriers raise the cost of goods and services, harming consumers and producers alike.
"Restrictions on trade between people are immoral and undermine sustainable development. Trade barriers raise the costs of goods, harming poor people everywhere by preventing entrepreneurship and employment.
"Countries that have liberalised trade, such as Vietnam and South Korea, have achieved substantially higher rates of growth and real reductions in absolute poverty, compared to those who have those have not liberalised trade, which includes many African countries, where poverty increases daily," said Morris whose report was first published by the International Policy Network (IPN), London, a charity-based, non-governmental, educational and non-partisan organisation in the UK.
"Trade liberalisation does create winners and losers. The biggest winners are poor consumers, who will benefit from lower cost goods, greater opportunities for employment and greater freedoms as entrepreneurs.
"Meanwhile, the losers will be the members of the elite in both rich and poor countries, who have been the main beneficiaries of trade restrictions," adds Morris' report.
Wan Saiful, meanwhile, said he would submit the report to Prime Minister Abdullah Ahmad Badawi during a meeting in London today. The PM is stopping over in the British capital en route to the World Economic Forum in Davos, Switzerland.
"The report will then be sent to relevant officials at the Prime Minister's Office and the ministry of international trade and industry," he said.
The report is also available free of charge to the public by e-mailing a request to wansaiful@malaysiathinktank.org.
The fourth round of free trade negotiations between the US and Malaysia ended earlier this month in San Francisco.
Both sides have expressed doubts that the talks will conclude in time before the fast-track approval authority that the current US administration enjoys ends on July 1. The US Congress, thereafter, regains the right to amend any trade pact.
The Malaysia Think Tank London is an independent organisation registered in England believing in personal responsibility, rule of law and market solutions. The IPN, meanwhile, conducts, commissions and disseminates research with partner organisations in the realms of health, environment, trade and development.
The report in Bahasa Malaysia, entitled 'Just trade: The moral imperative of eliminating barriers to trade' argues that restriction of trade between peoples are immoral and undermines sustainable development.
Wan Saiful Wan Jan, director-general of Malaysia Think Tank said: "Removal of trade barriers is not just an economically sound move, it is also a moral obligation. We should not oppose trade liberalisation as long as the process is transparent and honest. Integrity of the process is the key".
Malaysian social and political activists have voiced opposition to the ongoing free trade agreement (FTA) talks between Malaysian and the US, claiming its implementation will lead to more economic woes for Malaysians.
Medicine prices, in particular, will rise along with job losses and the sidelining of local industries, they claim. Wan Saiful, however, said that free trade was an initiative to be encouraged. "The debate over Malaysia's FTA negotiations has been marred by ridiculous claims by certain groups. We are publishing this report, which has been translated from English, to contribute to the public debate.
"Malaysians should know that free trade is inherently good. We should not be fooled into believing unfounded and scare-mongering claims made by protectionist groups with vested interests."
He said that liberalisation would allow for more choice and competition and those with low incomes would be able to choose between higher quality products at lower prices, or lower quality items at higher prices.
"Competition will drive down prices and we can better afford to buy what we want to buy. Continued protectionism is a way of maintaining artificially higher prices for inefficient production. Protectionism only victimises the poor in our country," said Wan Saiful.
'Winners and losers'
In the report, author Julian Morris, Visiting Professor at the University of Buckingham, says trade barriers raise the cost of goods and services, harming consumers and producers alike.
"Restrictions on trade between people are immoral and undermine sustainable development. Trade barriers raise the costs of goods, harming poor people everywhere by preventing entrepreneurship and employment.
"Countries that have liberalised trade, such as Vietnam and South Korea, have achieved substantially higher rates of growth and real reductions in absolute poverty, compared to those who have those have not liberalised trade, which includes many African countries, where poverty increases daily," said Morris whose report was first published by the International Policy Network (IPN), London, a charity-based, non-governmental, educational and non-partisan organisation in the UK.
"Trade liberalisation does create winners and losers. The biggest winners are poor consumers, who will benefit from lower cost goods, greater opportunities for employment and greater freedoms as entrepreneurs.
"Meanwhile, the losers will be the members of the elite in both rich and poor countries, who have been the main beneficiaries of trade restrictions," adds Morris' report.
Wan Saiful, meanwhile, said he would submit the report to Prime Minister Abdullah Ahmad Badawi during a meeting in London today. The PM is stopping over in the British capital en route to the World Economic Forum in Davos, Switzerland. "The report will then be sent to relevant officials at the Prime Minister's Office and the ministry of international trade and industry," he said.
The report is also available free of charge to the public by e-mailing a request to wansaiful@malaysiathinktank.org.
The fourth round of free trade negotiations between the US and Malaysia ended earlier this month in San Francisco.
Both sides have expressed doubts that the talks will conclude in time before the fast-track approval authority that the current US administration enjoys ends on July 1. The US Congress, thereafter, regains the right to amend any trade pact.
The Malaysia Think Tank London is an independent organisation registered in England believing in personal responsibility, rule of law and market solutions. The IPN, meanwhile, conducts, commissions and disseminates research with partner organisations in the realms of health, environment, trade and development.
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