Malaysia ratifies CPTPP

 With this, Malaysia was the ninth from eleven countries to ratify the agreement; only Brunei and Chile yet need to ratify the deal. 

  

The members of the CPTPP, originally called Trans-Pacific Partnership, are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The trade deal was already signed in 2018 but the Malaysian Parliament required some years of deliberation and consultation for final approval.

  

The Ministry of International Trade and Industry (MITI) summarized that the CPTPP elevates the country’s competitiveness and enhances its strategic position. In a Cost-Benefit Analysis, MITI found that the benefits accruing from the ratification of CPTPP far outweigh any potential costs that may arise from the implementation of this Agreement.   

  

An important consideration was that the CPTPP broadens Malaysia's access to new markets such as Canada, Mexico and Peru, which are not covered by any existing free trade agreement, providing access to a wider range of high quality raw materials at competitive prices, and increasing the country's attractiveness as an investment destination. On the other hand, businesses in other CPTPP economies will have greater access to the Malaysian market, which according to the ministry should increase the country’s attractiveness as an investment destination and provide benefits to various sectors of the Malaysian economy.   

  

With regards to services, MITI further highlighted that the CPTPP will provide greater mutual recognition of professional qualifications as well as licensing or registration between member states.

  

From a political perspective in times of growing protectionism, the CPTPP as a bloc advancing regional economic integration can be seen as a clear commitment to the significance of a multilateral trading system.