Landmark TPP deal will give Malaysian exporters the edge: Minister

File photo shows Malaysian Trade Minister Mustapa Mohamed on Oct 5, 2013. (Photo: AFP/Sonny Tumbelaka)

KUALA LUMPUR: Malaysia welcomed a deal sealed on Monday (Oct 5) on a sweeping trade pact that would cut trade barriers and create the world’s largest free trade area.

Malaysian Minister of International Trade and Industry Mustapa Mohamed said in a statement that the 12-nation Trans-Pacific Partnership (TPP) would "promote trade and investment and help Malaysia mitigate the challenges of the global economic environment".

He said the TPP would provide Malaysian companies with “greater market-access opportunities” in markets in the Americas such as the United States, Canada, Mexico and Peru, with which Malaysia does not have any free-trade agreements (FTAs).

The TPP would also give Malaysian exporters a “competitive advantage over regional competitors" in exporting major Malaysian exports, therefore generating of revenue and employment for "tens of thousands of Malaysians", he added.

He added that Malaysia won "several concessions" at the TPP negotiations. "Parties agreed to take into consideration almost all of our concerns and sensitivities particularly in the areas of government procurement, state-owned enterprises and the bumiputera issues. Elements of flexibilities accorded to Malaysia include longer transition periods and differential treatment for Malaysia’s sensitive areas," he said.

On the issue of intellectual property rights, Malaysia had stood firm that the TPP should not hinder the public’s accessibility to affordable drugs and healthcare, while at the same time ensuring the necessary incentives for pharmaceutical innovators to produce new drugs and medicines, Mustapa stated.

He gave assurance that Malaysia’s decision to sign onto the TPP would be a “collective decision”, adding that the official text of the agreement, once prepared, will be in the public domain and presented to parliament for debate. He added that the government would also have full consultations with the public and other interested parties.