What would Malaysia lose if it withdrew from CPTPP, per Miti?

Question

Accepted Answer

Malaysia Would Face Significant Economic and Trade Repercussions if Withdrawing from CPTPP

The withdrawal from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would result in substantial disadvantages for Malaysia, hindering its international trade standing and economic progress. The nation would forfeit the advantages offered by this high-standard trade pact and could be perceived as regressing in its global trade engagement.
Missed Economic Benefits and Preferential Access

Malaysia would forego the tangible benefits derived from the CPTPP, which currently allows local exporters to enjoy preferential tariff rates. As of March 10, 2023, the Ministry of International Trade and Industry (Miti) had already issued 576 preferential certificates of origin, valued at over RM226.6 million on a free on board (FOB) basis. These certificates, issued since the agreement's implementation on November 29, 2022, enable local businesses to benefit from reduced or eliminated import duties in member countries, thereby enhancing their competitiveness.
Negative Perception in International Trade

A decision to withdraw from the CPTPP could lead to Malaysia being viewed as moving backward in the realm of international trade. This perception might arise as other nations are actively seeking to join the agreement, signalling its perceived value and positive impact on socioeconomic positions. Miti highlighted that six countries, including the United Kingdom, China, Taiwan, Ecuador, Costa Rica, and Uruguay, have formally requested accession, with negotiations for the UK's entry nearing finalisation.
Undermining a Gold-Standard Agreement

The CPTPP is described as a "gold-standard agreement," and Malaysia's withdrawal would mean missing out on the specific advantages it provides. Miti's stance, informed by a cost-benefit analysis conducted by PricewaterhouseCoopers (PWC), indicates that the benefits Malaysia stands to gain from the CPTPP significantly outweigh any potential costs associated with its participation. The ministry has secured various flexibilities and policy space for Malaysia within the agreement, underscoring its strategic importance.

Reading history

Hide →

This history is cleared when the page is closed.

What would Malaysia lose if it withdrew from CPTPP, per Miti?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

2

0

0

Share with friends