President Barack Obama has signed laws to ‘fast-track the Trans Pacific Partnership Agreement (TPPA)’. Now we also better fast-track our preparations to join the TPPA, too!

The TPPA was supposed to be concluded at the end of the last two years, but failed to to do so because of delays in the US legislative processes and approvals. Now the ball is in the courts of 12 Pacific Rim countries viz Malaysia, Australia, Brunei, Canada , Chile, Japan, Mexico ,New Zealand,,Peru, Singapore, Vietnam and the US.

Indonesia is not among the negotiating countries. Her population is large like China’s, but Indonesia is perhaps much more protective. China’s market is vastly bigger but she is nevertheless prepared to consider joining the TPPA because China is more open to international competition.  

What about us in Malaysia?

YB Mustapa Mohamed, our realistic Minister of International Trade, says, “We are looking for the way forward ,which includes engagement with ministries and industries ,(and consumers ) to make sure, our concerns  are adequately addressed.”

That is only right and proper. But we have to develop a strong national consensus soon. Many of our concerns are not unique to us. We can therefore consolidate our collaboration with the smaller like-minded countries, to negotiate for the best deal possible against the flexing mussels of Giants such as, the US and China.

However, we may have serious problems in ‘adequately addressing’ our special concerns at home. These are related to our state enterprises (government-linked companies or GLCs), bumiputra interests, government tenders and contracts and other protected individuals, interests and procedures.

Here we have to be careful not to insist too much on unduly narrow, short-term preferences that benefit mainly the few powerful and parochial businessmen. They cannot and should not be protected forever, at the expense of the rakyat and our overall national progress?

In any negotiation, no party can play a zero sum game? It cannot be the case, where when I spin, whether it’s heads or tales, I win  and you lose all the time. There has to be give and take. In any case there are some TPPA safeguards for affirmative action. But they cannot again be limitless and last forever.

Bumiputra businesses and state enterprises (GLCs) will surely understand that their protective barriers have to phased out sooner rather than later, as they face more globalisation in the real world.

But if we succumb to internal resistance to change, transform and to go forward, we will have to pay a high price. This will be the diminished international trade and investment, slow economic growth and poor employment prospects, especially for our thousands of unemployed graduates from our local universities. Then what will happen,  with all the resultant frustration , resentment and possible social reaction?

Optimising Malaysia’s advantages

Our International Trade and Industry Ministry and other government negotiators are still of high calibre, despite our weak education system. They have and will try their best, to optimise Malaysia’s advantages from the TPPA negotiations.

However, the minister and his able team can only be as strong as their political and public backing and support.

We hope that the government'’s wide public consultations, with all stake holders, politicians, businesses leaders, big and small, and general consumers, will bear fruit. We hope that we will adopt reasonable positions  and strategies  together with the other TPPA countries. Then Malaysia will be able to join the TPPA and get into the mainstream of international trade and investment - and flourish.

But if we choose to be slow to join, or reluctant to decide in time, then come around December this year, we will be marginalised from the TPPA. We could then well remain a prisoner in the present middle income trap.

We cannot afford to the proverbial frog in the well. If so, worse still, we could decline and even sink, especially if we don’t feel the rising temperatures of competition and meritocracy enclosing us all around.

So I hope we will join the TPPA, for the sake of our longer-term national progress and sustainability. Good luck to our able minister and tough negotiators!

RAMON NAVARATNAM is chairperson of Asli/Centre of Public Policy Studies.