KUALA LUMPUR, Sept 22 — There is a fine line between the green initiative toward sustainability and green “protectionism”, said ambassador Syahril Syazli Ghazali, Malaysia’s permanent representative to the World Trade Organisation (WTO) Public Forum 2023.
While any initiative towards sustainability should be applauded, Syahril defined green “protectionism” as contentious measures such as quotas, taxes, subsidies and stringent requirements imposed over various sustainability reasons that lead to unfair trade practices and unfair competition, as well as import restrictions.
“Malaysia and other developing countries acknowledge developed countries’ rights to introduce and implement green policies such as the European Union’s Green Deal and Carbon Border Adjustment Mechanism and the United States’ Inflation Reduction Act,” he said.
Syahril said this during the Avoiding green protectionism: how to address barriers to an inclusive green transition panel at the forum.
The diplomat stressed the importance of such measures to be consistent with members’ WTO commitments and should not lead to unnecessary burdens to trading partners.
Syahril said unilateral actions such as the green protectionism initiative negatively influence countries, particularly developing and least developed nations, causing international conflict on environmental issues.
“Only with broad and ongoing participation can the green transition be implemented smoothly. What is vital, however, is to objectively examine the worth of all opinions and input obtained during stakeholder interactions and incorporate them where possible, rather than being hyperbolic or viewing them solely as a means to display good regulatory processes.
“In summary, it is critical to promote more cooperation and inclusivity in the international trade regime,” he said.
In wrapping up his intervention plans at the session, Syahril said given the varying levels of readiness and technical capabilities among EU trading partners, specific attention must be integrated to provide for flexibility (gradual/longer transition) for key groups such as small and medium enterprises (SMEs) to meet requirements.
He also stressed the need to recognise environmental measures and policies are already in place or being established by developing countries with the same goals as developed countries.
He said technical assistance, experience sharing and capacity building are crucial in establishing a level playing field, especially to enhance developing countries’ capacities and capabilities, as well as in facilitating policy compliance and adaptation.
In this context, the diplomat expressed gratitude to the EU for carrying out a three-year project worth €3 million (RM14.98 million) from 2021 to improve Malaysia’s business and investment environment.
— Bernama
