TPPA presents net economic benefits to Malaysia, says MITI

The Trans-Pacific Partnership Agreement (TPPA) presents net economic benefits to Malaysia, but there will be adjustment costs to firms from increased competition and cross-sectorial obligations under it.

The Ministry of International Trade and Industry's (MITI) Deputy Secretary-General (Strategy and Monitoring) Datuk J. Jayasiri said Malaysia needs to be in the trade pact to enjoy the preferential treatment.

"This is especially to the four countries, namely the United States, Mexico, Peru and Canada, where Malaysia has yet to have the preferential access.

"If we are out of the TPP and our competitors are in, they get the preferential treatment and this puts our exporters at a disadvantage," added.

He told reporters this after attending a forum on the TPPA organised by the Malaysian Economic Association (MEA) here today.

In addressing the forum earlier,Jayasiri had said that getting market access for goods and services, is the main reason for Malaysia wanting to join the TPPA.

"The United States will give an immediate elimination of tariff up to 90 per cent, Canada (95 per cent), Mexico and Peru (80 per cent), while for Japan it means opening up its wood market to Malaysia," he added.

He said at the same time, Malaysia can maintain existing export duties under the TPPA.

He said besides Malaysia, Vietnam is another country getting this privilege, but was unsure if the country has been asked to phase down some of its export duties.