KUALA LUMPUR: The US-ASEAN Business Council has lauded the decision of the US lawmakers to renew the Trade Promotion Authority which will enable the US to give the go-ahead for the Trans Pacific Partnership.
The legislation will help open the door to new markets for US goods and services, boost growth, grow US exports and support well-paying jobs in the US and elsewhere in the world, it said.
“TPA is a vital element in ensuring that US businesses and workers have the best, most comprehensive access possible to foreign markets, and that the economic pillar of the US re-balance to Asia is successful,” said its vice president (policy), Marc Mealy.
The TPP, which is in the final leg of discussions with many countries expecting it to be concluded next month, is an ambitious free trade pact between 11 countries including Malaysia.
The others are Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.
The legislation was introduced on Thursday and it includes significant improvements to the law which was already in place (2002-2007).
These are in areas such as non-tariff barriers to US goods and services, digital commerce, restrictions on cross-border data flows, fair competition with state-owned enterprises, countering forced localisation practices, labour and environmental standards, and enhanced procedures to ensure Congressional oversight and public input on US trade negotiations.
The business council said the legislation is more important than ever as the US actively pursues three significant trade agreements, namely the TPP, the Transatlantic Trade and Investment Partnership (TTIP) and the Trade in Services Agreement (TISA).
The TPP in particular, has the potential to grow US exports up to US$125 billion per year, and has the potential to serve as the building block of a free-trade area of the Asia-Pacific.
Four members of the Asean are party to the TPP negotiations -- Brunei, Malaysia, Singapore, and Vietnam.
“The TPP is essential to America’s economic future and position in Asia, and TPA will help ensure that it is a success,” Mealy said.
“The TPP will allow US companies to gain greater market access in 11 countries, including the four in Asean, Asia’s fastest growing region.
“Once TPP is in place, we hope that the administration will outline a strategy for moving towards a free trade agreement with all 10 Asean nations,” he added.