US Withdrawal From TPP Implies Deal Is Off, Says Moody

KUALA LUMPUR, Jan 25 (Bernama) -- The US withdrawal from the Trans-Pacific Partnership (TPP) suggests that the agreement will not be implemented, said Moody's Investors Service. Its Associate Managing Director, Marie Diron said the failure to implement the TPP would be a considerable lost for exporters aiming to gain greater access to major markets. "We had anticipated the TPP to reduce trade cost and open up new investment opportunities for its 12 members, particularly its Asian members," she said in a statement on Wednesday. Diron said the economies of Vietnam, Malaysia, Brunei and Mexico were reliant on exports and showed the greatest exposure to trade with TPP countries. She said with the withdrawal of the US, prospects for significant large gains in incomes in Vietnam and Malaysia over the medium term on the back of higher trade, would be reassessed. Meanwhile, Diron said some countries have begun exploring trade options with China through the Regional Comprehensive Economic Partnership (RCEP). "However, the potential trade deals currently envisaged are unlikely to provide a lucrative economic benefit like the TPP as its member countries accounted for 40 per cent of global gross domestic product," she said. Diron said the TPP trade negotiations served as a catalyst for reform on the protectionist policies in Japan's agricultural sector. She said the abolishment of the TPP could hamper impetus for further structural changes in member countries that would boost competitiveness, investment and improve institutional quality. "We do not expect reform measures that have been implemented in anticipation of the TPP to be reversed," she said. Diron said Singapore would be one of the least affected countries with the abandonment of the TPP as it already has trade agreements in place with nine TPP countries. "Similarly, Japan and Australia are only modestly exposed to trade with the TPP countries and their export products maintain a strong access in other global markets," she said. --BERNAMA