‘Asean members in TPP can fine-tune RCEP aims’

BANDAR SERI BEGAWAN: MANY of the Asean member countries and their six dialogue partners in the Trans Pacific Partnership (TPP) can help to fine-tune the aims of the ambitions of the new Regional Comprehensive Economic Partnership (RCEP), says Indonesia. 

Trade Minister Gita Wirjawan said the countries have gone through extensive discussions over in the TPP Agreement (TPPA). 

“Overlapping, is there admittedly, with the TPP on one hand go and the RCEP on the other, but there are countries which have gone through extensive discussions on both TPP and RCEP and they will be able to recalibrate,” he said at a media briefing here yesterday. 

Of the 16 countries in the grouping, Japan, Malaysia, Singapore, Brunei, Vietnam, Australia and New Zealand are also in the TPPA negotiations. 

On Indonesia’s participation in the TPPA, Wirjawan said it is ‘observing ant at what is going on’ and excited to monitor the progress of the talks. 

“We’re not against anything which we believe will be good for us in the long run… we’re not at a point now to ascertain if the TPP concept is beneficial to us. 

“The RCEP requires quite a bit of handling and we want to make sure it progresses in a good way.” 

The RCEP, which involves the 10 Asean nations and the region’s free trade agreement (FTA) partners (Australia, China, India, Japan, South Korea and New Zealand) commenced discussions in May and aims to reach a conclusionde them by the end of 2015. 

Wirjawan however, felt that the current round mode of negotiations in the RCEP needs a re-look in a collective manner, and should reflect the way the commitments are rescheduled. 

“A single undertaking approach is important but there is an impression as if they are being treated as separate bilateral FTAs. 

“Too many discussions may distract from fulfilling the collective goal set out.” 

On the investments in the region, Wirjawan expressed concerns on the impact of capital movement following the US Federal Reserve’s decision move to taper its position on the tapering of the quantitative easing. 

He anticipated that there willwould similar be a high outflow of capital, similar to that as seen in June and July, in the coming months. 

The impact would also be felt in the regional currencies, which would subsequently impact the capacity of importers and exporters in the region. 

On the slowing of China’s economy, he said although the pace is not significant, it would affect commodity exports in terms of its the dollar value. 

Indonesia, for instance, has decreased exports of its natural resources such as coal. 

This has affected its trade account which slipped into a deficit of US$3.3 billion (US$5.8 billion in oil and gas and US$2.5 billion in non and oil gas exports). 

August 20, 2013

Source: Btimes.com.my