Cabinet agrees to ratify trans-Pacific trade deal

 

Previously, the Federation of Malaysian Manufacturers had urged Putrajaya to ratify the trade pact as it would boost economic recovery. (Bernama pic)

PETALING JAYA: The Cabinet has agreed to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the international trade and industry ministry has announced (Miti).

According to Bernama, Malaysia officially submitted the instrument of ratification for the trade deal to New Zealand as the CPTPP depositary on Sept 30.

The ministry said a cost-benefit analysis on the trade deal projected that total trade will increase to US$655.9 billion in 2030 through the CPTPP.

Previously, the Federation of Malaysian Manufacturers, among others, had urged Putrajaya to ratify the trade pact as it would boost economic recovery.

The Malaysian Rubber Products Manufacturers Association had also urged the government to ratify the CPTPP, citing its potential positive impact on the economy.

The CPTPP is a free trade agreement among Malaysia, Australia, Brunei, Canada, Chile, Japan, Mexico, Peru, New Zealand, Singapore, and Vietnam.

The agreement came into force for Australia, Canada, Japan, Mexico, New Zealand, and Singapore in December 2018, for Vietnam in January 2019 and Peru in September 2021.

Now, Brunei and Chile are the only countries who have yet to complete their respective ratification processes.

In a statement, Miti said China, Taiwan, Ecuador, and Costa Rica have also applied to join the CPTPP, giving Malaysian exporters wider market access.

It said the ratification and implementation of the trade deal would see Malaysia rise further in prominence as a global trading economy. It added that, by Jan 1, 2033, almost all exports to CPTPP member countries would enjoy duty-free treatment.

“Malaysia’s exports are projected to reach US$354.7 billion in 2030, with the trade balance remaining in strong surplus at 8.5% of the gross domestic product for the same year.

“As soon as the CPTPP is enforced in Malaysia, all exports to Australia and Singapore will enter these markets without being subjected to any duties. In 2024 and 2029, all Malaysian products exported to New Zealand and Canada, respectively, will enter these countries duty-free.” - FMT