The document discusses the Trans-Pacific Partnership (TPP) agreement, which aims to liberalize trade between 12 Pacific Rim nations. It faces protests over negotiation secrecy and potential impacts of intellectual property rules on drug costs. The TPP could increase members' economic size by opening new markets but also risks losing trade advantages if any country withdraws. Malaysia's position balances domestic stakeholders' mixed views and seeks exemptions, while ensuring any deal benefits the country.

1. Trans-Pacific
Partnership
MGM4136 CURRENT ISSUES IN MANAGEMENT
AUG 2015

2. Agenda
• What isTrans-Pacific
Partnership?
• Protest AgainstTPP
• Negotiation Secrecy
• Intellectual Property & Cost of
Medicine
• Increase Economic Size
• IfWeWalkAway
• Malaysia Current Position inTPP
Agreement
• Various Opinion aboutTPP
• Malaysia Current Status
• Progress ofThe Negotiations

3. What is Trans-Pacific Partnership?
• Started asTrans-Pacific Strategic Economic Partnership agreement
between Brunei, Chile, Singapore and New Zealand (May 1, 2006).
• In 2008, the United States expressed interest in entering into talks
with the four countries to liberalise trade in financial services and
Australia,Vietnam and Peru followed suit.
• Malaysia joined in 2010, and Canada & Mexico joined in 2012.
• Japan was the last to join the talks last year, making it the 12th
country to enter theTPP talks.
• Recently, South Korea has also officially expressed interest to join the
talks.

5. Different from other free trade agreement
• Those free trade agreements are usually limited to agreements
between countries to lower their tariffs for certain goods and
services.
• TPP has 29 chapters and covers issues that are beyond most free
trade agreements.
• The new rules that are negotiated will determine
howTPP member countries approach competition,
labour, environment, government procurement
and intellectual property rights.

6. Protest against TPP
• Mostly against the secrecy involved in the negotiations, proposed
clauses that favour perceived corporate profit over public interest.
• The negotiating text was out of bounds for the general public and
even lawmakers of allTPP member countries.
• In Malaysia, members of a Parliamentary Caucus are regularly briefed
on the progress of the negotiations but the negotiating text was
released only to the Unit Peneraju Agenda Bumiputera (Teraju) and
Institute of Strategic and International Studies (Isis) for separate cost-
benefit analysis.

8. Negotiation Secrecy
• Negotiators argue that releasing the negotiating text is akin to
showing your hand in poker, and all of them have signed
confidentiality agreements before entering the negotiations.
• The Malaysian InternationalTrade and Industry Ministry offered this
explanation:
“A level of confidentiality is required for two main reasons:
(a) regulations and the evolving process of negotiations and
rules surrounding theTPPA oblige negotiators to maintain
confidentiality of the negotiating texts and
(b) negotiators advancing the interests of Malaysia
strategically do not want to publicly disclose their
bargaining positions to ensure the best outcome during
the negotiations.”

10. Intellectual Property & Cost of Medicine
• A recent leaked draft of the intellectual property rights chapter
suggests that a proposal has been tabled to compelTPP countries to
compensate patent applicants with patent extensions for
“unnecessary delays” in the granting of the patent.
• This could delay Malaysia’s access to cheaper generic drugs as generic
manufacturers could not produce and market the drugs before these
patents expire.
• Investor-state dispute settlement clauses that are being negotiated
could allow foreign investors or corporations to take governments to
international tribunals for actions that are deemed to hurt profits or
violate their rights to be treated “fairly”, even though the actions are
taken in the interest of public health or environment.

12. Increase Economic Size
• Theoretically we will gain access to a market
of 800 million people with a combined GDP of
US$27.5 trillion.
• The Peterson Institute of Economics says
Malaysia stands to gain over US$41.7 bil
(RM133.9 bil) increase in exports and US$26.3
bil in income gains by 2025 if it stays on the
TPP track.

13. If We Walk Away?
• Malaysia will miss out on the opportunity to write the rules for future
trade in theTPP if it backs out at this stage of the negotiations.
• Malaysia may also face significantly higher tariffs for some of its
products that are exported to Canada .
• Developed countries grant preferential treatment to eligible products
imported from developing countries so that the products would be
competitive in the developed markets.

14. Malaysia’s known positions in the TPP
negotiations
• Malaysia is seeking a total carve-out of tobacco from theTPP
negotiations.
• Malaysia negotiators are also seeking for Malaysian state-owned
enterprises to be excluded fromTPP demands.
• They have not agreed to provisions that allow patents to be extended
beyond existing timeframes.

15. Various Opinion About TPP
• There has been mixed views in almost all negotiating countries as
industry players welcome the opportunity for greater market access.
• In Malaysia, the Federation of Malaysian Manufacturers and Malaysian
Textile Manufacturers Association have openly supported the
negotiations
• A coalition of NGOs called BantahTPPA have been voicing their
concerns through media and people on the street.
• The Malaysian civil society is mainly concerned about the
impact of theTPP on medicine prices, local small and
medium enterprises and the Malaysian government’s
sovereign rights to regulate within the country.
• There are also groups that are concerned about theTPP’s
impact on bumiputera rights.

18. Is Malaysia prepared to walk away from the
agreement if the risks outweigh benefits?
• Several ministers, including MITI minister Datuk Seri Mustapa
Mohamed and Prime Minister Dato’ Sri Najib Razak have made
statements that Malaysia would not sign theTPP if it does not benefit
Malaysia.
• While trade agreements in the past are not required to be tabled in
the Parliament, theTPP is an exception. Mustapa has reassured that
the finalisedTPP text will be tabled in the Parliament for debate
before Malaysia signs the agreement.

19. Progress of the negotiations
• There have been 19 rounds of official negotiations that are hosted by
all member countries.
• Several meetings between trade ministers have been held.
• In between these formal meetings, negotiations are going on through
bilateral meetings among delegations.
• Negotiators are now working through challenging issues in market
access and chapters like government procurement, intellectual
property and state-owned enterprises, and has stopped giving
themselves deadlines to conclude the talks.

23. https://www.youtube.com/watch?v=DnC1mqyAXmw

24. Reference
• https://servicescoalition.org/negotiations/the-trans-pacific-partnership-tpp
• http://www.businesscircle.com.my/11-things-malaysians-know-trans-pacific-partnership-tpp-negotiations/
• http://www.doctorswithoutborders.org/help-us-fix-tpp
• http://bantahtppa.blogspot.com/
• http://www.theglobeandmail.com/news/politics/nafta-countries-meeting-in-washington-over-tpp-auto-parts-
dispute/article26029777/
• http://www.citizen.org/TPP
• http://www.washingtonpost.com/news/wonkblog/wp/2013/12/11/everything-you-need-to-know-about-the-
trans-pacific-partnership/
• http://www.exposethetpp.org/
• http://www.aflcio.org/Issues/Trade/Trans-Pacific-Partnership-Free-Trade-Agreement-TPP
• http://tppinfo.org/

25. Prepared by
Hafizullah Mohd Amin (EX02906)
Michelle Lim Li Yoke (EX02885)
Mohd Johan Khair Azmi (EX02889)
Mohd Osman Hassan (EX02894)
LECTURER : PN. HAMIMAH HASSAN
Thank you
• Q & A