Misif supports Malaysia’s participation in TPPA

SHAH ALAM: The Malaysian Iron and Steel Industry Federation (Misif) is in full support of Malaysia’s participation in the Trans-Pacific Partnership Agreement (TPPA), according to its president Datuk Soh Thian Lai.

Soh said in a press statement yesterday that local exporters stand to be less competitive “if they decided not to participate in the TPPA as many will be excluded from enjoying the preferential tariffs compared with competing countries like Vietnam and Singapore.”

Presently, Vietnam is the largest exporter of iron and steel products among the Asean countries.

“The impact of that disadvantage will be even more significant should China, Indonesia, South Korea, Taiwan, Thailand and other competitors decide to join the TPPA later,” he added.

The TPPA will also provide Malaysia with market access to four trading partners namely Canada, Mexico, Peru and the US, which Malaysia presently has no free trade agreements (FTA) with.

These four countries accounted for about 74% of the market size of the TPPA economic bloc, with a GDP of about US$21 trillion in 2014.

Soh said: “By not being in the TPPA, Malaysia will not have a first mover advantage to write the rules and ensure Malaysian industries’ interests are addressed.

“In short, joining at a later date will subject Malaysia to a one-way accession process and not on Malaysia’s terms.”

He added that TPPA advocate both trade liberalisation and free trade but more importantly, also ensures fair trade.

The provision of a chapter on Trade Remedies under the TPPA entailing various trade measure mechanism will safeguard the accomplishment of this fair trade objective.

Soh pointed out that being competitive and finding markets overseas would be the order of the day in the coming years for local manufacturers.

Hence, the TPPA would serve as a great challenge and provide opportunities for the Malaysian iron and steel manufacturers to progress.

He said Misif was approached for consultation by Miti in late 2010 soon after Malaysia became the ninth TPP member in October 2010. Since then, Miti has kept Misif regularly updated on the developments of the TPPA discussions and sought Misif’s inputs and preferred positions for adoption on behalf of the domestic iron and steel industry.