-  Malaysia will continue to discuss with the 11 Trans-Pacific Partnership Agreement (TPPA) partners to find flexible solutions on trade even if the agreement fails to materialise, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said yesterday.

-  Malaysia had expressed wariness over some parts of the deal, including those related to state-owned enterprises and government procurement. As such, Malaysia would actively participate in the discussions without neglecting the nation's interests.

-  Beyond typical trade deals, TPPA focuses on tariffs and market access with protection for companies that compete against government-backed businesses and stricter safeguards for patents and copyrights.

-  Note that the TPPA would create a free-trade zone linking economies with cumulative annual economic output of about USD28tril.

-  The countries in the pact include the US, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

-  These countries are also among Malaysia’s major trading partners which extends great potential for Malaysia’s future trade prospects.

-  Note that China is excluded from the TPPA and is on separate trade talks with countries including South Korea, Japan and Australia currently.

-  Mustapa said that although Malaysia had adopted its own stand on a few issues, including generic medicine, intellectual property and government procurement, the country would still continue to seek for space for future domestic policies.

-  He iterated that Malaysia’s early entry into TPPA negotiations provided an upper hand for the country to address its interests.

-  Aside from that, Malaysia would fare better as a trade-oriented economy if it participated in the negotiations for the agreement.

-  The TPPA has entered into its 19 rounds of negotiations, with Brunei hosting the latest round in Bandar Seri Begawann from 23 Aug to 30 Aug 2013.

-  Countries negotiating the US-led TPPA did not meet the deadline in 2013 to conclude the deal. TPPA negotiators have not announced a new timeline for talks to be concluded.

-  However, a TPPA ministerial meeting has been scheduled after the Asia-Pacific Economic Cooperation (APEC) Trade Ministers' meeting next month. 

Source: AmeSecurities