Mahathir backs tailored trade agreements
Malaysia's 92-year-old Prime Minister Mahathir Mohamad said in Tokyo on Monday that smaller and younger nations that are just beginning to grow should be given due consideration.
Delivering a speech at Nikkei's annual conference on Asia's Future, the world's oldest prime minister said small countries like Malaysia find it difficult to compete in the free trade world.
"Although we pay lip service to free trade, most countries practice some kind of restriction," Mahathir added.
"We have to recognize ... there are infant industries and infant nations. They need some protection because they are not in a position to compete with the great trading nations," he said.
If the United States, the richest country with the biggest economy in the world, believes in restrictions on trade, it is not justified, Mahathir said. Small countries cannot compete on the same terms with big countries.
"The world is becoming more separated than ever," he warned.
Mahathir said he would revive his "Look East" policy to draw lessons from advanced Asian economies. "When we see the growth in East Asia, we have a lot to learn," he said, adding that Malaysia wants to learn how Japan, the Republic of Korea and China grew.
He is still in favor of the East Asia Economic Caucus, or EAEC, a regional free trade zone proposal that Mahathir came up with in 1997 and encompassed the Association of Southeast Asian Nations member states, China, Japan and the ROK.
The EAEC was considered to be basically an Asia-Pacific Economic Cooperation without North America and Australia. Nevertheless, it was never put into action officially.
"In the past, we were not able to do this because of the objection from the US," Mahathir said. "Now we should consider the formation of the EAEC seriously, not only with the countries of the Far East but also countries like India and some Central Asian nations."
He continued: "If the US likes to accept the majority opinion, it is fine for the US to join the regional framework. But the US seemed to want to impose its will on all international organizations."
Mahathir added that Malaysia has had relations with China for 2,000 years. "China is a huge market with 1.4 billion people. Obviously it is attractive to all countries in Southeast Asia. We want access to this market."
He said Malaysia welcomes foreign direct investment that involves bringing in capital and technology, setting up plants, and employing and training Malaysians to produce goods for the domestic market and for export.
Mahathir stepped down in 2003 after staying in power for 22 years. He returned to the premiership after the opposition alliance under his leadership defeated Najib Razak's ruling coalition in Malaysia's recent election.
caihong@chinadaily.com.cn
(China Daily 06/12/2018 page12)
