MALAYSIA needs to approach the Trans Pacific Partnership (TPP) talks with extra care as the agreement covers a broad-ranging array of subjects beyond the traditional trade pacts.
"It is challenging not because of the change in the Malaysian political landscape but because it covers an array of subjects - investor state dispute settlement (ISDS), labour, state-owned enterprises (SOEs), environment and Intellectual Property Rights (IPR)," said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He explained that although these were unfamiliar issues, they must be addressed "at some time".
"If Malaysia is not part of it, we will miss the boat and miss the opportunity to be part of the process of drafting future trade rules," he said at a media briefing yesterday.
"It is challenging not because of the change in the Malaysian political landscape but because it covers an array of subjects - investor state dispute settlement (ISDS), labour, state-owned enterprises (SOEs), environment and Intellectual Property Rights (IPR)," said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
He explained that although these were unfamiliar issues, they must be addressed "at some time".
"If Malaysia is not part of it, we will miss the boat and miss the opportunity to be part of the process of drafting future trade rules," he said at a media briefing yesterday.
The TPP, which did not meet the December 2013 dateline for conclusion of talks, had resumed negotiations in Singapore on Monday and is scheduled to continue until next Tuesday.
Malaysia is engaged in the TPP talks with 11 other countries, namely Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
"Our wish list is for our concerns to be addressed sufficiently and for our partners to understand Malaysia's concerns and provide enough safeguards. If those are addressed, we will come out smiling and if not, it would be difficult to reach any agreement.
"On a balance, if our concerns and challenges are addressed adequately, the chances of getting through will be good. We have an open mind," he said.
Of the 29 chapters drawn up for the negotiations in the TPP, eight are almost finalised. They are development, regulatory coherence (best practices), competitiveness and business facilitation, small and medium enterprises, temporary entry (preferential), cooperation and capacity building, administration, institutional arrangement and competition policy.
Mustapa is concerned with the additional tariffs that Malaysian exporters are subject to following the withdrawal of the Generalised System of Preferences (GSP), which provides preferential access to markets.
The European Union has withdrawn its GSP effective this year, while the GSP for Malaysian products to enter Canada will expire next year. The TPP will help to mitigate the withdrawal of the GSP.
"The elimination of import duties by TPP countries on Malaysian exports are expected to result in savings in import duties of about US$1.2 billion (RM3.9 billion) upon entry into force of TPP."
The minister did not want to speculate if the talks could be concluded this year or in conjunction with President Barack Obama's planned visit to the region in April.
"We have to ensure that whatever compromises or agreements reached are comfortable in the context of core policies, Constitution, issues on federal-state relations as well as cost-benefit analysis and debate in Parliament," he said.
Read more: 'Extra care' on TPP talks http://www.btimes.com.my/Current_News/BTIMES/articles/rup20cd/Article/#ixzz2tv5Mfvpf
