The trade pact, which aims to reduce tariffs in order to further liberalise trade, has been signed after 19 rounds of negotiations.
AUCKLAND: Twelve countries including Malaysia have finally signed the ambitious Trans-Pacific Partnership Agreement (TPPA) here on Thursday, which is set to expand markets, reduce tariffs and promote freer trade.
International Trade and Industry Minister Mustapa Mohamed signed the comprehensive 21st-century pact for Malaysia that represents nearly 40 per cent of global gross domestic product worth USD30 trillion.
The signing of the TPPA in New Zealand’s capital city is the culmination of 19 rounds of tough negotiations over five years.
The 12 countries in the trade pact are New Zealand, Australia, Chile, Mexico, Japan, Peru, Canada, Vietnam, United States, Singapore, Brunei and Malaysia.
Most of these countries comprise Malaysia’s major trading partners.
More than 90 per cent of the economic gains will be attributable to lower non-tariff measures.
It is also expected to create new opportunities for workers and businesses, contribute to raising the living standards of 800 million people, benefit consumers, reduce poverty and promote sustainable growth.
Besides Mustapa, Malaysia’s Chief Negotiator for the TPPA, J Jayasiri, was also present at the historical event.
Bernama learned that the signing ceremony held at the SKYCITY Convention Centre in downtown Auckland began at 9.00am local time with a colourful cultural performance followed by a ministerial meeting before the signing.
Malaysia, which joined the TPPA in the third round of negotiations in October 2010, will see its GDP increase from USD107 billion to USD211 billion from 2018 to 2027.
Investments are projected to increase from USD136 billion to USD239 billion from 2018 to 2027, largely due to higher investment growth in textiles, construction and distributive trade.