MARKET DEVELOPMENT
Sabah Will Benefit From TPPA, Says Yong
Sabah Will Benefit From TPPA, Says Yong
03/02/2016 (Daily Express) - Sabah will benefit from the country's participation in the Trans-Pacific Partnership Agreement (TPPA) as the agreement will provide for the gradual abolition of import tariffs of Sabah's biggest export item, palm oil.
Sabah Progressive Party (SAPP) President Datuk Yong Teck Lee said the State government's biggest revenue earner is currently not covered by any trade agreement with America, the world's biggest economy.
"The agreement will ensure the gradual abolition of import tariffs of palm oil into America, Canada, Peru and Mexico, the last four TPPA countries that still impose duties on palm oil of up to 11 per cent. America is imposing six per cent duties.
"On the other hand, it will be several more years before Indonesia, our biggest palm oil competitor, can join TPPA.
Hence, Sabah's palm oil has a headway to penetrate TPPA markets before Indonesia.
"Palm oil was Sabah's saviour during the Asian Financial Crisis of 1997-98. The palm oil sector continues to support other sectors of the Sabah economy with its multiplier effects. TPPA will benefit this sector," he said in a statement here Monday.
These facts, he said are completely opposite of what the MP for Kota Kinabalu said that to join TPPA is to choose between America and China.
He said Malaysia, like the other nine members of Asean, is already covered by the China-Asean Free Trade Area (China-Afta) that took effect in 2010 and the healthy trade (RM210 billion in 2014) between Malaysia and China will not be affected by TPPA.
"Our own free trade pact, the Asean FTA, took effect in 1992. Ever since 1992 trade tariffs among Asean countries and ever since 2010 with China, India and Japan, have been on a downward trend. Ninety per cent of trade is now zero-rated," he said.
He added that Sabah, as part of Malaysia, already has free trade pacts with the country's major trading partners.
"This is good because the single, biggest economic constraint facing Sabah is the smallness of our market.
That is why we have BIMP-East Asean Growth Area with a population of 57 million. Trade pacts give us market access which we otherwise would not have.
"When TPPA came along, no small country can ignore it.
Each and every country fought hard to get the best possible deal. Nobody wins all or loses all.
What would Sabah do if Sabah had full autonomy on international trade? Would Sabah opt out of the TPPA?" he asked.
He did not deny that TPPA have tough provisions on financial services, dispute settlement, environment and labour standards, protection of intellectual property, anti-corruption and other matters that might be challenging for some sectors of the economy.
"It is to be expected that both opposition and ruling party MPs dutifully voted according to party lines on the TPPA bill in Parliament. But it is important that our MPs understand what they are voting for or against," he said.
Sabah Progressive Party (SAPP) President Datuk Yong Teck Lee said the State government's biggest revenue earner is currently not covered by any trade agreement with America, the world's biggest economy.
"The agreement will ensure the gradual abolition of import tariffs of palm oil into America, Canada, Peru and Mexico, the last four TPPA countries that still impose duties on palm oil of up to 11 per cent. America is imposing six per cent duties.
"On the other hand, it will be several more years before Indonesia, our biggest palm oil competitor, can join TPPA.
Hence, Sabah's palm oil has a headway to penetrate TPPA markets before Indonesia.
"Palm oil was Sabah's saviour during the Asian Financial Crisis of 1997-98. The palm oil sector continues to support other sectors of the Sabah economy with its multiplier effects. TPPA will benefit this sector," he said in a statement here Monday.
These facts, he said are completely opposite of what the MP for Kota Kinabalu said that to join TPPA is to choose between America and China.
He said Malaysia, like the other nine members of Asean, is already covered by the China-Asean Free Trade Area (China-Afta) that took effect in 2010 and the healthy trade (RM210 billion in 2014) between Malaysia and China will not be affected by TPPA.
"Our own free trade pact, the Asean FTA, took effect in 1992. Ever since 1992 trade tariffs among Asean countries and ever since 2010 with China, India and Japan, have been on a downward trend. Ninety per cent of trade is now zero-rated," he said.
He added that Sabah, as part of Malaysia, already has free trade pacts with the country's major trading partners.
"This is good because the single, biggest economic constraint facing Sabah is the smallness of our market.
That is why we have BIMP-East Asean Growth Area with a population of 57 million. Trade pacts give us market access which we otherwise would not have.
"When TPPA came along, no small country can ignore it.
Each and every country fought hard to get the best possible deal. Nobody wins all or loses all.
What would Sabah do if Sabah had full autonomy on international trade? Would Sabah opt out of the TPPA?" he asked.
He did not deny that TPPA have tough provisions on financial services, dispute settlement, environment and labour standards, protection of intellectual property, anti-corruption and other matters that might be challenging for some sectors of the economy.
"It is to be expected that both opposition and ruling party MPs dutifully voted according to party lines on the TPPA bill in Parliament. But it is important that our MPs understand what they are voting for or against," he said.