Without The US, TPP Members To Focus On RCEP - UOB Malaysia

KUALA LUMPUR, Feb 15 (Bernama) -- Members of the Trans-Pacific Partnership (TPP) will likely focus on the Regional Comprehensive Economic Partnership (RCEP), now that the US has pulled out of the deal, says United Overseas Bank (UOB) Malaysia Bhd. UOB Malaysia Economist Julia Goh said without the US, it is unlikely that the other 11 member states would push ahead with the trade deal. "Instead the members are likely to focus on RCEP, which is a more Asia-centric trade deal, accounting for 30 per cent of the global economy," she said. The RCEP is currently being negotiated among 16 countries -- the 10 ASEAN member states, Japan, China, India, South Korea, Australia, and New Zealand. Goh said once realised, the regional mega-trade deal would open up opportunities, particularly for Vietnam, Malaysia, South Korea, India, China and Hong Kong. For the TPP, on the other hand, the biggest beneficiaries would have been Vietnam, Malaysia and Singapore as these countries export products with high tariffs levied by the United States. She said Vietnam would have gained from higher exports of agriculture goods, textiles and garments, footwear and automotive parts while Malaysia would have benefited from exports of palm oil and rubber, plywood, electronics, textiles, automotive parts and components. "As such without the TPP Agreement, it would be a lost opportunity for these countries in terms of potential revenue foregone," she added. --BERNAMA