Malaysian Experts Welcome Free Trade Agreement

Prominent experts in Malaysia welcomed the establishment of the Regional Comprehensive Economic Partnership (RCEP) at the 37th Leaders Summit of the Association of Southeast Asian Nations (ASEAN), calling it a groundbreaking development for countries in the region following years of negotiations.

Ahamed Kameel Mydin Meera, chairman of the Movement for Monetary Justice, told Anadolu Agency that the ASEAN summit has shown effective results despite the restrictive conditions due to the novel coronavirus pandemic.

"The countries of the region have provided concrete offers, especially in terms of economic health policies. The solutions offered regarding the COVID-19 pandemic were rather constructive and realistic," Mydin said.

Referring to the signing of the RCEP agreement as a result of eight years of negotiations as a great achievement, he said: "Such comprehensive free trade agreements have negative as well as positive aspects. The abolishing of the customs duty provides the countries in the agreement with the circulation of the trade products freely among them."

"It also creates an opportunity for consumers to obtain the imported products at lower costs. But local producers may face damages from the agreement as long as they are not involved in this competition. Therefore, India has withdrawn from the RCEP negotiations."

Mydin noted that the free trade agreement can lead to the risk of foreign dependency for countries with lower production capacities.

"Take Malaysia as an example. Malaysia has not reached a competitive level in agricultural production. Our food imports are very high. That some countries stopped exporting food to Malaysia during the COVID-19 period left Malaysia in a very difficult situation," he said.

He stressed that despite a number of risks, the RCEP agreement is a significant opportunity for economies that were damaged during the pandemic.

Regarding relations between ASEAN and the US, Mydin said "ASEAN will maintain its neutral attitude in the rivalry between the US and China."

"It is inevitable that the RCEP agreement will increase China's economic influence in the region, but ASEAN countries will not risk their relations with the US."

Ahmad Fauzi Abdul Hamid, a professor of political science at Sains University in Malaysia, said the RCEP agreement is a result of the gradual decline of US influence in the Asia-Pacific.

"We cannot know whether China's filling the space that the US leaves will result in an economic dominance or hegemony, but China will use the advantages given by the RCEP to reinforce its dominance claims on the South China Sea and its ideal of the Belt and Road Initiative," Hamid said.

He warned ASEAN countries not to meekly sign the agreement but to lay down their own conditions after comprehensively evaluating it in terms of politics and national security.

Hamid emphasized that ASEAN countries need to engage in dialogue and cooperation more than ever.

Professor Ahmad Azam Abdul Rahman, a member of the Independent Permanent Human Rights Commission (IPHRC) of the Organization of Islamic Cooperation (OIC) said "this agreement, reached after long negotiations, covers 2.1 billion people and 30% of global gross domestic product (GDP). Undoubtedly, this agreement will improve the economic integration in the Asia-Pacific and open new doors for various types of cooperation."

He went on to say that ASEAN is a promising formation that tends to increase its economic power.

"ASEAN will maintain its pragmatist approach for regional interests and remain neutral against the rivalry of superpowers."

*Writing by Dilan Pamuk in Ankara -