TPPA invalid if US drops out: Mustapa

KUALA LUMPUR: The Trans-Pacific Partnership Agreement (TPPA) will be invalid if the US decides to drop out from the multinational deal, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said.
In stating this, he said Chapter 30 of the TPPA specified that the agreement is a no-go without involvement from the US.
He added the chapter had detailed that the agreement would only happen with the participation of a country that contributes 85% to TPPA output.
"Without the US' participation, there will be no TPPA," he told reporters at Parliament here.
The outcome of the US presidential election saw an unprecedented victory for Republican candidate Donald Trump as the 45th president of the US.
During campaigning, Trump had been highly critical of the TPPA, stating that the agreement was not favourable enough for the US.
Mustapa said the cancellation of the TPPA might bring economic effects to Malaysia, especially with trade access to countries in the American region.
"We went into TPPA for the overall interest of Malaysia. We believe that this will help trade and investment for the country.

"If TPPA is not carried out, it may affect the country as the deal provides us access to Mexico and Canada," he added.
Mustapa however told the public to remain calm as it was still too early to make any prediction, noting that the US has traditionally been a country that practices an open economy.