Govt still weighing need for cost-benefit analysis for TPP minus the US

KUALA LUMPUR: International Trade and Industry (Miti) Minister Datuk Seri Mustapa Mohamed said the government is aware of the calls for a renewed cost-benefit analysis on the rebranded Trans-Pacific Partnership (TPP) agreement, noting that the authority is still looking at it.

The TPP11 (minus the US) is now known as the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) following a discussion in Da Nang, Vietnam last month.

“Well, we are not there yet. But we certainly have to do calculation on the benefits and costs. It’s not too difficult because we just have to take away the US part of it. We are still thinking about that and how to go forward,” Mustapa told reporters at Miti’s hi-tea event yesterday.

He said the government is also aware that the benefits of the TPP11 will not be as substantial as when US intended to be part of the trade deal.

“US is the biggest economy in the world with 20% of the world production coming from the country. But going forward, some countries have (also) expressed (their) interests to join the TPP11.

“So from our point of view, putting the cost-benefit analysis aside, if Malaysia is not part of this deal then our country will seriously be disadvantaged,” Mustapa added.

The TPP covered 40% of the world economy before US President Donald Trump abandoned the 12-nation deal last January, following through on a promise made during his presidential campaign.

The trade agreement is now left with 11 member countries, namely Australia, Brunei, Chile, New Zealand, Peru, Singapore, Vietnam, Japan, Malaysia, Canada and Mexico.

After the ministry announced that the TPP has been resurrected as the CPTPP, Bantah TPPA called the government to come up with a renewed cost-benefit analysis report as the previous report was deemed irrelevant after the US pulled out.