Putrajaya urged to review trans-Pacific trade deal
An economist said the government needed more active industrial, trade and innovation policies rather than free trade agreements. (Bernama pic)
KUALA LUMPUR: An economist has urged the government to review the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), saying the free trade agreement could have grave consequences on Malaysia’s economy.
Jomo Kwame Sundaram said the CPTPP mainly benefitted a few big companies and businesses, and would worsen inequality in the local economy.
He said the government needed to take a more pragmatic approach to international trade, adding that more active industrial, trade and innovation policies were required for Malaysia’s economic development rather than free trade agreements (FTAs).
“Malaysia already has FTAs with Singapore, Japan and Australia. The three countries account for about 82% of Malaysia’s exports and 84% of imports among countries under the CPTPP.
“Malaysia will not lose much due to trade diversion by staying out of the CPTPP,” he said during a panel discussion titled “CPTPP: Why Malaysians Must Wake Up.”
The CPTPP is a free trade agreement among Malaysia, Australia, Brunei, Canada, Chile, Japan, Mexico, Peru, New Zealand, Singapore and Vietnam.
The agreement came into force for Australia, Canada, Japan, Mexico, New Zealand and Singapore in December 2018, for Vietnam in January 2019, Peru in September 2021 and Malaysia on Nov 29.
Brunei and Chile are now the only countries which have yet to complete their ratification processes.
Jomo said the agreement would also put Malaysia at risk of legal suits by foreign investors as it contains provisions for investor-state dispute settlements, where foreign investors could sue the government for actions related to foreign direct investment (FDI).
Speaking at the same discussion, Parti Sosialis Malaysia chairman Dr Michael Jeyakumar Devaraj said there was no evidence that an FTA such as the CPTPP would be beneficial in attracting FDIs.
He said political stability and a sound local economic system would attract more FDIs.
KUALA LUMPUR: An economist has urged the government to review the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), saying the free trade agreement could have grave consequences on Malaysia’s economy.
Jomo Kwame Sundaram said the CPTPP mainly benefitted a few big companies and businesses, and would worsen inequality in the local economy.
He said the government needed to take a more pragmatic approach to international trade, adding that more active industrial, trade and innovation policies were required for Malaysia’s economic development rather than free trade agreements (FTAs).
“Malaysia already has FTAs with Singapore, Japan and Australia. The three countries account for about 82% of Malaysia’s exports and 84% of imports among countries under the CPTPP.
“Malaysia will not lose much due to trade diversion by staying out of the CPTPP,” he said during a panel discussion titled “CPTPP: Why Malaysians Must Wake Up.”
The CPTPP is a free trade agreement among Malaysia, Australia, Brunei, Canada, Chile, Japan, Mexico, Peru, New Zealand, Singapore and Vietnam.
The agreement came into force for Australia, Canada, Japan, Mexico, New Zealand and Singapore in December 2018, for Vietnam in January 2019, Peru in September 2021 and Malaysia on Nov 29.
Brunei and Chile are now the only countries which have yet to complete their ratification processes.
Jomo said the agreement would also put Malaysia at risk of legal suits by foreign investors as it contains provisions for investor-state dispute settlements, where foreign investors could sue the government for actions related to foreign direct investment (FDI).
Speaking at the same discussion, Parti Sosialis Malaysia chairman Dr Michael Jeyakumar Devaraj said there was no evidence that an FTA such as the CPTPP would be beneficial in attracting FDIs.
He said political stability and a sound local economic system would attract more FDIs.
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