China agreed to limit the growth in its exports of 10 textile and clothing products to the European Union to between eight and 12.5 percent a year, an EU diplomat close to the negotiations said on Friday.
World Trade organization(WTO) theory of globalization are base on Comparative Advatage theory. Under WTO agreement. Developed country like US and EU countries would remove trade barrier on labour intensive industry like textile on 1 Jan 2005. Whereas developing country like Malaysia would remove restriction on services industry like financial industry and legal profession on 2008.
Malaysia has well prepared on liberalisation of financial industry via consolidated all bank to 10 anchor bank. Overlap branch has been closed down and staff has been retrenched. Recently, Malaysia has issue 5 stock brokerage licenses to foreign stock broker in preparation of such liberalisation.
US and EU, apparently caught unprepared for liberalisation of labour intensive industry like textile industry. They start retrenchment only from 2005. They request to extent the full liberalisation 3 years to 2008.
Shouldnt they start preparing such liberalisation like Malaysia did for it financial industry?
Should Malaysia extent liberalisation of our services industry 3 years to 2011? It is not fair for Malaysia to liberalised its servies industry while developed country still protecting their labour intensive industry. They might seek extension again after 3 years while we have issue 5 foreign bokerage licenses and more?
Tag Economic : Economy
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