KUALA LUMPUR, Jan 6, 2016:
The Trans-Pacific Partnership Agreement (TPPA) will not result in any significant trade or macroeconomic gains for Malaysia.
Kelana Jaya MP Wong Chen said this was according to the PricewaterhouseCoopers (PwC) report that on Dec 3.
He urged International Trade and Industry Minister Datuk Seri Mustapa Mohamad to recognise the report and publicise the findings.
“They have to stop pretending that the TPPA is good for international trade or the Malaysian economy.
“I congratulate PwC for their well prepared report which they did without fear or favour,” he said at a press conference at the PKR headquarters today.
Wong said according to the report there was little difference between the macroeconomic projections for GDP and exports if Malaysia signed the deal and tariffs reduces to zero over a 10-year period or if Malaysia didn’t sign the deal.
He said if non-tariff measures were reduced by 25% to 50%, the annual percentage growth contributed by TPPA to GDP is a mere 0.6% to 1.15%, whereas for export growth, the growth is 0.54% to 0.9%.
“In other words the signing of the TPPA even in best case scenarios was going to give us a minimal boost of 2%.”
He said the real surprise from the report was the trade balance projections that show significant deterioration.
“If we don’t sign the TPPA, we are projected to register a higher trade balance in the year 2027 of US$42 billion (RM182.3 billion) compared to just US$29.7 billion (RM128.9 billion) if we sign it.
“Even in the best case scenario, Malaysia will only see a maximum 1.15% growth of GDP and 0.9% in export but suffer a 30% reduction of trade balance. “
Wong said the matter was clear, there was no significant macroeconomic justification to sign the TPPA.
“In fact from a international trade balance perspective, it would be worse for Malaysia.
“If trade and economics were not the main drivers for TPPA, surely politics and geopolitical considerations are.
“Why is Prime Minister Datuk Seri Najib Razak bending his back to handover to the US our parliamentary and sovereign rights for a few lousy dollar?”