Malaysia is ready to face any eventuality arising from the possibility of the Trans Pacific Partnership Agreement (TPPA) being scrapped.
This follows the indication by United States president-elect Donald Trump that he was not in favour of the trade pact.
Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan said Malaysia envisaged a negative impact from the TPPA initiative not being implemented, as research had indicated it would help enhance the Gross Domestic Product and earnings as well as job opportunities.
He said the TPPA would fail without the participation of the US as it is the world’s largest economy.
“If the US does not endorse the TPPA, I feel he (Donald) will also face a problem, in not realising that this is a trend with 420 of 620 Free Trade Agreements (FTAs) having been finalised at present.
“If the US chooses to close the door to the TPPA, it means the country’s own exports would be curtailed and those from other countries cannot enter either.
“This will have an impact on the global economy and the US has to reflect on its intended action,” he told reporters after opening the new building of the SMJK Poi Lam in Ipoh.
He highlighted as an example the import tax on electrical and electronic goods imposed on Malaysia by the US at present is an average five per cent.
But, with the implementation of the TPPA, the duty on these products would be abolished immediately.
The TPPA as an FTA was being negotiated as the larger part of the Trans-Pacific Strategic Economic Partnership since 2010.
Other than the US and Malaysia, it also involved Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.
Negotiations to finalise the TPPA concluded on Oct 5 last year in Atlanta and an agreement signed in Auckland on Feb 4, 2016.
Dubbed the largest trade pact, the TPPA is also the most comprehensive in history, while setting high standards in multi-directional agreements. –Bernama