Mahathir calls for review of Trans-Pacific trade pact

But he stops short of saying Malaysia would leave the trade pact now called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The Trans-Pacific Partnership (TPP) had sparked protests worldwide over concerns of big businesses from developed countries undermining smaller economies. (Bernama pic)

KUALA LUMPUR: Prime Minister Dr Mahathir Mohamad has called for a review of the Trans-Pacific Partnership (TPP) trade agreement, saying smaller economies like Malaysia were at a disadvantage under the current terms.

He told Japan’s Nikkei that the trade pact, which includes Japan and Canada, should take into consideration the level of development of various countries.

“Small, weaker economies must be given a chance to protect their products,” Mahathir told the Japanese financial daily. “We have to review the TPP.”

Mahathir’s call to review the TPP agreement would be a blow for the 11-member trade pact, which was finalise after tough negotiations earlier this year following the withdrawal of one of the original signatories, the United States.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as it is now called following the US withdrawal, will reduce tariffs in countries that together amount to more than 13% of the global economy, a total of US$10 trillion in gross domestic product. With the United States, it would have represented 40%.

Mahathir did not reject the significance of agreements such as the TPP and he did not say whether he would consider leaving the trade pact altogether, Nikkei reported.

Mahathir said his government “must review all agreements” entered into by the previous administration, including infrastructure, trade and security pacts.

He said Malaysia will review the Code of Conduct on the South China Sea, which is being negotiated between Beijing and the Association of Southeast Asian Nations (Asean).

Nikkei reported that Mahathir reiterated Malaysia did not want the presence of warships in the South China Sea and the Straits of Malacca. -FMT