KOTA KINABALU: Even with the United States out of the picture, Malaysia is better off proceeding with the Trans-Pacific Partnership Agreement (TPPA), an economic observer said here today.
University Malaysia Sabah (UMS) senior lecturer Dr Rafiq Idris believes America’s recent withdrawal from the TPPA does not necessarily render the trade agreement irrelevant, as many have suggested.
“Some recommended that Malaysia just focus on the Regional Comprehensive Economic Partnership (RCEP), but I believe we can have both trade agreements to maximise the potential benefits for Malaysia.
“Although Malaysia has Free Trade Agreements (FTAs) with most of the TPPA members, the TPPA is seen as a positive step towards deeper economic integration within the Asia-Pacific region, as well as a platform for Malaysia to foster better trade ties with countries on the American continent,” said Rafiq.
“Malaysia should also proceed with the RCEP, as there is a big potential for market integration involving about 3.4 billion people. The RCEP is six to seven times bigger than the TPPA.”
The RCEP involves 10 Asean countries and its six FTA partners – Australia, China, India, Japan, New Zealand and South Korea.
However, Rafiq acknowledged the concerns and complications surrounding the TPPA, including the introduction of TRIPS-Plus (The Agreement on Trade-Related Aspects of Intellectual Property Rights Plus), which could have a detrimental effect on Malaysians’ access to medicine.
Conceding that such matters could become problematic, the senior lecturer called for a comprehensive study on both agreements to gauge whether the benefits are greater than the costs, so that Malaysia could decide to proceed with both or just one.
Malaysia announced its participation in the TPPA in 2011 alongside twelve other countries – Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States.
The trade agreement, touted as a strategic step towards improving trade ties and mutual market penetration, was marred with controversy – culminating with the United States’ withdrawal in January under new protectionist President Donald Trump.