MALAYSIA will be the biggest beneficiary of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), said international rating agency Moody’s Investors Service.

“The deal will provide export access into new markets, including Canada, Peru and Mexico, benefiting palm oil, rubber and electronics exporters,” it added.

The agency today released its report “Sovereigns – Asia Pacific and Americas: Revised Trans-Pacific Partnership benefits all members, but less so without the US”.

The CPTPP is a revision of the Trans-Pacific Partnership (TPP) after the United States withdrew from the trade deal, leaving 11 other nations – namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – to reap the benefits from the mega pact.

Moody’s said despite the US pullout, the CPTPP would still boost exports and income for all members and help sustain reform efforts in a number of countries.

Compared with the TPP, lost trade opportunities would be felt most in Vietnam, Malaysia and Japan, because these countries stood to gain the most from greater access to the US market, given the scope of current trade agreements.

On the issue of reform, Moody’s said because the lower trade and non-trade barriers under CPTPP were conditional on country-specific reforms, the agreement would help sustain domestic reform momentum.

“The ongoing reform efforts should boost competitiveness and investment, and strengthen institutional quality over time for member nations and the benefits would be greatest for sovereigns with relatively low governance and competitiveness scores, such as Peru, Vietnam, Mexico and Brunei,” it said.

Moody’s said according to estimates from the Peterson Institute for International Economics, if the CPTPP expanded its membership to include other large Asian economies, the real income gains for members would be much greater than the current deal and higher than the original TPP pact.

Among Asian countries that had expressed interest in joining the deal include Indonesia, South Korea, the Philippines, Taiwan and Thailand. – Bernama, March 9, 2018.