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MITI: CPTPP will not negatively impact Malaysia's agro sector

KUALA LUMPUR: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will not negatively impact the country's agricultural sector.

Deputy Trade and Industry Minister (MITI) Liew Chin Tong said the agreement, which came into effect for Malaysia in November last year could guarantee the rights and interests of local farmers as it was the only free trade agreement (FTA) signed by Malaysia to recognise food security issues.

"Accusations, where the agreement does not allow the government to implement the ban on basic food products export such as chicken, were not true.

"Instead, the government has the right to implement a temporary ban on the export of food products to ensure it is sufficient for the people," he said in Dewan Rakyat, today.

Liew said this in response to Che Alias Hamid (Perikatan Nasional-Kemaman) on the government's stance on the CPTPP issue which was believed to impact the country's agricultural sector negatively.

Previously, 54 organisations submitted a memorandum to the Agriculture and Food Industries Ministry (MAFI) to seek clarification about Malaysia's ratification of CPTPP.

Malaysia Food Sovereignty Forum (MFSF) head coordinator Nurfitri Amir Muhammad said Malaysia's participation in the CPTPP will have a severe negative impact on farmers, livestock breeders and fishermen as well as on food security and Malaysia's sovereignty.

However, Malaysian Consortium of Mid-Tier Companies (MCMTC) president Callum Chen said Malaysia could not afford to withdraw from the CPTPP as the agreement was crucial for the country's trade in moving forward.

Chen said unlike other trade agreements, the CPTTP did not only open up trade but brought about technical assistance and transfer of technology know-how, which was critical for capacity building for local businesses.

Meanwhile, Liew added that the CPTPP would not also result in the abolishment of import duties for agricultural products to a large extent.

He said this was because Malaysia depended on agricultural products importing 50 per cent more than local goods.

"In 2020, the average import duty for agricultural products is about 13.8 per cent and it continues to decrease to 7.9 per cent in 2021.

"At the same time, Malaysia is also given another 16 years period to reduce and eliminate import duties, including agricultural products.

"We are also not required to fully abolish import duties for eggs, chicken and other products listed under CPTPP and can still maintain our tariff rate quota system."

Liew also said the government had no plans to ratify the FTA in the near future.

"At the moment, there is no decision to continue new FTA negotiations even though there are other (countries) who are interested to collaborate with Malaysia," he said in response to a supplementary question from Jimmy Puah Wee Tse (Pakatan Harapan-Tebrau) on government's plan to ratify FTA anytime in the near future.

He added that the agricultural sector and other related matters pertaining to FTA negotiations were under MAFI's jurisdiction.

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