Obama to offer clearer picture on TPP’s fate

LIMA: Most Trans-Pacific Partnership (TPP) agreement member countries want to proceed with the free trade pact, but will not rush into making a decision, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

Outgoing United States President Barack Obama’s meeting with 11 other TPP leaders today might give a clearer picture on the pact’s fate, Mustapa said.

The 12 leaders, including Prime Minister Datuk Seri Najib Razak, will discuss the issue on the sidelines of the 2016 Asia-Pacific Economic Cooperation (Apec) Economic Leaders’ Meeting here this week.

The TPP has been placed on a backburner following Donald Trump’s victory over Hillary Clinton in the United States presidential election.

Trump had opposed the free trade pact during his campaign. He had also indicated he would take a more protectionist stance.

Mustapa said a meeting with trade ministers of the US, Australia and Peru here had indicated that most TPP members remained committed to ratifying the pact.

However, he said it was too early to decide on its future following Trump’s win.

“There are those who feel that the US should be given more time to decide on its participation in the TPP,” he said yesterday after kicking off a two-day meeting with other Apec economic ministers here.

He said it might take a year before US trade and foreign policies became clear under the Trump administration.

Mustapa said during the meeting, Obama might share the current TPP situation in the US and steps to “persuade” its congressmen and the new administration to proceed with it.

He said there were three categories of TPP countries following Trump’s win — those that were very committed (Japan and New Zealand); those that were committed, but adopting a wait-and-see attitude; and, those that had a change of heart and want to review their involvement (Vietnam).

Mustapa explained that one of the main reasons Malaysia was participating in the TPP was because it had yet to have any free trade agreement with the US, Mexico and Peru, among others.

The TPP signatories are Malaysia, Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.

The TPP agreement requires ratification of at least six countries, accounting for 85 per cent of the total gross domestic product (GDP) of the 12 countries, to bring it into force.

The US’ GDP alone constitutes about 60 per cent of the total TPP members’ GDP. Hence, there will be no TPP agreement without the US’ participation.