Taking sweeping broadsides at rich nations and multinational companies, he said: “Fair trade can be free, but free trade can be unfair. That’s what we are asking for. Nothing much really. We are ready to be exploited but we must be fairly exploited.”
Mahathir made his remarks in a speech to corporate chief executives on the sidelines of the Asia-Pacific Economic Cooperation summit. It is his last major international appearance before he retires at the end of this month after 22 years at the helm.
Mahathir, an avowed champion of the developing world, said the poorer countries could not agree to the agenda at the failed World Trade Organizations talks in Cancun, Mexico, last month because “it was not our agenda.”
The September talks collapsed after the developing countries led by India, Brazil and Malaysia banded together against rich countries in what turned out to be a dichotomy over free trade and breaking down tariffs.
Mahathir said multinational companies, although offering higher wages, can afford to pull out of a country in the event of cataclysmic losses.
But “our companies and corporations cannot afford to lose because they operate only in our country. If they lose they cannot go anywhere,” he said.
Mahathir said poor countries cannot compete with rich countries, just as a Malaysian team would be thrashed by an American team playing football.
“In the first place the Malaysian never play football. I am talking about American football, not soccer. So they wouldn’t know what the rules are. In the second place they are small people like me. The Americans are 240 pounds each.”
That’s why developing countries “should be allowed to protect our own little businesses, our own little banks. And when times come we will be able to compete with giants,” he said.
Mahathir also said developing countries take pride in their national industries, even if they are producing just matchsticks and cigarettes rather than aircraft.
“There is thing called national pride. It gets in the way all the time,” he said.
“We would like to hold something of our own. We would like to have a small automotive industry and be able to say look this car was built by us and it runs,” he said.
Malaysia’s Proton car is a great source of pride for Malaysia, but it is also one of the most protected because of the high tariffs the government imposes on imported cars.—AP