CPTPP a means to economic recovery, says FMM
07 Sep 2021
The Federation of Malaysian Manufacturers (FMM) sees the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as an important recovery tool against the economic impact from the Covid-19 pandemic.
The CPTPP is expected to open up another three countries that Malaysia does not have a free trade agreement (FTA) with namely Canada, Mexico and Peru. Collectively, the three markets represent a combined GDP of US$2.92 trillion (RM12.1 trillion), 8.6 times bigger than the country’s economy.
CPTPP has 11 signatories and is expected to eliminate tariffs of current Malaysian exports to CPTPP countries and allow Malaysian businesses to supply goods for global supply chain and involve in domestic supporting services. It also provides the opportunity for exporters to tap into the supply chains of other CPTPP countries.
“With Malaysia’s graduation from the General System of Preferences in 2014, Malaysian exporters are currently paying higher duties for their exports to Canada. In addition, the current high protective regime and non-tariff barriers imposed currently by Mexico and Peru may not be beneficial to Malaysian exporters,” said FMM president Tan Sri Soh Thian Lai in a statement.
He pointed out the CPTPP is expected to provide needed leverage as zero or reduced duties, and manufacturers will have a better opportunity to export to Mexico and further their access to the US market under the North American Free Trade Agreement.
“With the recent UK’s accession to CPTPP coupled with the announcement of interest from other countries such as Indonesia, South Korea, Thailand and the Philippines, we firmly believe that the early ratification of CPTPP would assist Malaysian exporters to secure preferential market access within CPTPP countries to remain competitive over our regional competitors,” said Soh.
Source: The Sun Daily