US-China trade row has intensified RCEP negotiation, says Miti

KUALA LUMPUR: The US-China trade dispute has helped to intensify the negotiation of the Regional Comprehensive Economic Partnership (RCEP), says the International Trade and Industry Ministry (Miti).

"The conflict between the US and China has provided the impetus for an early conclusion of the RCEP," said its deputy secretary-general Datuk Norazman Ayob during a question and answer session at the South China Morning Post China Conference here on Thursday (Oct 11).

Responding to a question on whether the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and RCEP can co-exist, he said the focus is very much on RCEP for the sole reason it is Asean driven.

"We believe regional collaboration we possessed at Asean level provide the best opportunities in inserting our economic interest," he said.

"As far as the CPTPP is concerned, Malaysia has signed. Mexico, Japan and Singapore have ratified the agreement. Vietnam is rectifying," he said, adding that the new government is reviewing all the FTAs to ensure they are mutually beneficial and the negotiation will not be dominated by any one economic power.

Earlier, in his speech read out on behalf of International Trade and Industry Minister Darell Leiking, Norazman said there is renewed momentum to substantially conclude the negotiations by the year-end as Malaysia together with the other economies agreed, the RCEP would present huge trade and investment opportunities amidst the trade conflict between US and China.

He also said RCEP has the potential to become the world's largest mega FTA.

"When implemented, it will create the largest integrated market of 3.5 billion people. Chief negotiators including myself and the 16 countries - the 10 Asean countries plus India, China, Japan, South Korea, Australia, and New Zealand - had just concluded our discussions this week in Jakarta before this weekend's meeting of trade ministers in Singapore," he added.

Negotiations for the RCEP has been ongoing since 2013.

The 16 participating countries are 10 Asean nations, Australia, China, Japan, Korea, India and New Zealand.

The CPTPP is a rebranded Trans-Pacific Partnership Agreement (TPPA) that "collapsed" after the United States withdrew in January 2017 under President Donald Trump.

The other signatories are Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.