KUALA LUMPUR: Malaysia and 10 other member nations in Trans-Pacific Partnership (TPP) can carry on without the US, if a requirement clause is amended, said Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan.
"I think US President-elect Donald Trump's intention to withdraw from the TPP is a temporary vision. Perhaps later, he may realise the tangible benefits of TPP and change his mind accordingly," Ong said.
Ong was responding to a question of Trump's announcement to quit the Trans-Pacific Partnership (TPP) trade deal on his first day in the White House.
US President-elect Donald Trump had consistently campaigned on a protectionist and anti-trade platform.
The 12-member TPP consist of the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
This landmark deal aims to cut trade barriers in some of Asia's fastest-growing economies and boost ties with US allies in the region.
Signed by its initiator US, and 11 other participating members in February 2016, the TPP covers 40 per cent of the world's economy. It has not yet been ratified.
It must be highlighted TPP can only come into force if it is approved by six countries that account for at least 85 per cent of the group’s economic output.
In effect, the deal will be dead without ratification by the US, whose US$18 trillion economy make up 60 per cent of the TPP economic worth.
Asked on the way forward for Malaysia, Ong highlighted a possible option is to amend a requirement clause in TPP.
"It is up to the determination of 11 remaining member countries to amend the clause requiring six nations which make up 85 per cent collective approval for TPP to carry on without the US," Ong said.
He was speaking to reporters here today after officiating at the "Sustainable Consolidation in Malaysia's Iron and Steel industry" seminar organised by Malaysia Steel Institute, an agency under the purview of International Trade and Industry Ministry.
Ong’s view echoes that of Singapore Prime Minister Lee Hsien Loong at the recent Asia-Pacific Economic Cooperation (APEC) talks held in Peru.
Singapore's Lee said the TPP, without the US, would mean a completely new agreement.
This leaves the 11 remaining countries to renegotiate at least just one clause of the TPP to allow the pact to be salvaged, without America's participation. Indeed, new negotiations of the TPP would have to take into consideration new global developments.
"That means, the 12 minus one will have to get together and sign an agreement with a different coming-into-effect clause. And that is fresh negotiation…and that is not so easy to do,” Lee reportedly said.
“The TPP, as an agreement, has got rules as to when it comes into effect - what, how, when it does happen,” he added.