Malaysia yesterday said it would focus efforts on wrapping up a multination trade pact led by China, as the Southeast Asian country braces for the possible collapse of the US-led Trans-Pacific Partnership (TPP).
The comment comes after the administration of US President Barack Obama suspended efforts to win congressional approval for TPP before president-elect Donald Trump takes office, saying the pact’s fate was up to Trump and Republican lawmakers.
Malaysian Minister of International Trade and Industry Mustapa Mohamed said that Kuala Lumpur was looking to push the Regional Comprehensive Economic Partnership (RCEP) — mooted by China as part of its outreach to the 10-member ASEAN.
“The current uncertain international economic situation has motivated and strengthened the resolve of RCEP countries, which are among the fastest-growing countries in the world, to continue working closely in reaching a conclusion of this trade agreement,” Mustapa said in a statement.
Trump vowed to scrap the TPP several times during his campaign.
Mustapa’s statement follows a raft of US$34 billion worth of bilateral deals signed between Malaysia and China, in what is seen as a shift toward the Asian giant and away from the US.
The deals were signed during a visit this month to China by Malaysian Prime Minister Najib Razak, who said ahead of the weeklong trip that it would push ties between the two nations to “new highs.”
The TPP can only proceed if the US, which “constitutes about 60 percent of the total TPP members’ GDP,” remains part of the deal, Mustapa said.
It can only take effect if ratified by at least six countries that have GDP making up 85 percent of the total GDP of the 12 countries in the pact, he added.
“There will be no TPP without the US’ participation,” he said.
Signed in October last year after more than five years of negotiations among the 12 Pacific Rim signatories, the TPP aims to cut trade barriers in some of Asia’s fastest-growing economies and boost ties with US allies in the region, in the face of China’s rising influence.
Mustapa said a clearer picture on the state of the TPP was expected to emerge during discussions on the sidelines of this weekend’s APEC leaders’ summit in Lima, Peru.
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