Ministries Can Use TPP Experience For Other Trade Deals

KUALA LUMPUR, Dec 14 (Bernama) -- The experience by the 16 ministries involved in the Trans-Pacific Partnership Agreement (TPPA) negotiations can be adopted for other trade deals even if the TPP has failed to be achieved. Deputy International Trade and Industry Minister, Ahmad Maslan, said if the TPP was not implemented, the country would not benefit from the more open market in the United States, the world's biggest economy. "We will also not get an easier path to markets in Canada, Mexico and Peru. Hence, we will not get the benefits that we had hoped for. That's a loss. "Another (loss) was the cost of RM15 million (US$3.38 million) incurred over five years involving 16 ministries and agencies. But, the experience is valuable to the Ministry of International Trade and Industry and 15 ministries that learned about the best and latest free trade agreement (FTA) that has become the benchmark in free trade...the best FTA is the TPP," he said when met by reporters at Parliament lobby Tuesday. (US$1 = RM4.42) Twelve countries -- Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, the US, Vietnam and Malaysia, finalised the TPP negotiations on Oct 5, 2015. Under the TPP, about 4,000 tariffs will be abolished when the country implements trade with the US, Mexico and Peru, with which Malaysia do not have any trade agreements. Although there was a proposal to implement the TPP via 12 minus 1 formula, that is, without the US, it would be difficult as under the TPPA, one clause stated that the six countries that ratified must account for 86 per cent of the total gross domestic product (GDP). "The US alone constitutes about 60 per cent of the total GDP of the TPP members. Hence, if the US is not involved, it is difficult for the TPP to be implemented. "We have to wait and see on Jan 20, 2017, when Donald Trump will be sworn in as President," he said. Previously, International Trade and Industry Minister Mustapa Mohamed had said that if the TPP failed to materialise, Malaysia would explore available options including negotiating bilateral FTAs with other countries. "Our focus is now on the Regional Comprehensive Economic Partnership involving 10 ASEAN countries and six major trading partners in Asia Pacific including China," he said in a statement recently. -- BERNAMA