Dr M: Trade pact still being studied
As Australia formally ratifies the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Malaysia wants to make an in-depth study before committing.
KUALA LUMPUR: As Australia formally ratifies the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signalling the deal will come into force by end December, Malaysia insists on conducting a study that the free trade agreement will not adversely affect the economy.
“We are studying it very deeply to make sure it doesn’t have a bad effect on our economy. I can’t give you an exact date but we are looking at it,” Prime Minister Tun Dr Mahathir Mohamad told reporters here yesterday after launching Industry4WRD, the national policy on Industry 4.0.
Dr Mahathir was responding to Australia’s move to formally ratify the FTA, making it the sixth nation alongside Canada, Japan, Mexico, New Zealand and Singapore to do so.
Australian Prime Minister Scott Morrison announced that his government had ratified the 11-country pact. This means the deal that will slash tariffs across much of the AsiaPacific will come into force at the end of December, New Zealand said.
“This triggers the 60-day countdown to entry into force of the Agreement and the first round of tariff cuts,” said New Zealand Trade and Export Growth Minister David Parker.
The original 12-member deal was thrown into limbo early last year when US President Donald Trump withdrew from the agreement to prioritise protecting US jobs.
The remaining nations, led by Japan, finalised a revised trade pact in January, and renamed it from TPP to Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP).
The deal will reduce tariffs in economies that together amount to more than 13% of global gross domestic product (GDP) – a total of US$10 trillion (RM40 trillion). With the United States, it would have represented 40%.
“As protectionist moves strengthen worldwide, the importance of free and fair rules grows more and more, Japanese Economy Minister Toshimitsu Motegi said in Tokyo.