ASEAN KEY DESTINATIONS
TPP beneficial to Brunei’s economy
BRUNEI’S total trade with countries under the Trans Pacific Partnership (TPP) agreement amounted to $10 billion in 2014, signifying the importance of the free trade deal to the sultanate’s economy, the Ministry of Foreign Affairs and Trade (MoFAT) said in a statement yesterday.
MoFAT said that Brunei will benefit from increased market access, trade and investment flows among the TPP member countries such as Australia, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Brunei’s total trade with TPP countries comprises an average of 64 per cent of the country’s overall trade, according to the ministry.
“The government of Brunei sees its participation in the TPP (as one) of significant importance that will drive national economic development, ensuring that our nation can continue to prosper in the future,” MoFAT said, adding that Brunei’s future relies on its success as a trading nation.
The ministry said that larger market access under the TPP will also benefit domestic companies which are already exporting or are looking to do so.
The TPP provides greater predictability and transparency in the trade and investment regime which will boost confidence among investors and complement efforts to improve the business environment in the country, MoFAT said.
These efforts will enhance Brunei’s overall competitiveness and will attract “quality” foreign direct investments that will help drive economic growth and diversification.
The TPP concluded negotiations on October 5 in the United States after about five years of trade negotiations and heated debates as member countries seek to achieve a balanced trade deal.
MoFAT said that the accord is a “high-quality” and comprehensive trade agreement that will “set the stage for 21st century trade and investment rules in the Asia-Pacific region.”
Once ratified, the TPP will create a market with a combined gross domestic product (GDP) of US$30 trillion, which is 40 per cent of global GDP.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below