MoFAT responds to TPP queries

Dear Editor,

RESPONDING to the queries put forward by public over the past week on Brunei Darussalam's participation in the negotiations over the Trans-Pacific Partnership (TPP) Agreement, the Ministry of Foreign Affairs and Trade (MoFAT) would like to take this opportunity to express its appreciation for the continued interest in these negotiations, and would like to inform the public of the following:

Brunei Darussalam is a founding member of the Trans-Pacific Partnership negotiations, which has its origins in the Trans-Pacific Strategic Economic Partnership or 'P4' Agreement which was signed by Brunei Darussalam, Chile, Singapore and New Zealand, and entered into force for Brunei Darussalam in July 2006. The Trans-Pacific Partnership builds upon the 'P4' Agreement, and includes additional members like Australia, Canada, Japan, Malaysia, Mexico, Vietnam and the United States of America.

It is also important to note that the TPP is not Brunei Darussalam's first engagement in a free trade agreement (FTA). We already have FTAs that have entered into force with all ASEAN member states — China, India, Japan, South Korea, Australia and New Zealand — that have led to increase in Brunei Darussalam's exports to these countries.

The TPP will further build upon these existing agreements by providing Bruneian exports greater access to the markets of the 11 TPP partners by lowering duties on Brunei Darussalam's exports, making our goods more competitively priced, and therefore, increasing demand for our products. At the same time, imports into the country will also become cheaper as a result of preferential tariff treatment, making goods more affordable for the general public. Concurrently, Bruneian companies will have the opportunity to use inputs from TPP partner countries for the manufacture of goods, which in turn, can be exported from Brunei Darussalam, to other countries, taking advantage of preferential duty rates conferred under the agreement.

With regard to concerns on foreign service providers entering the Brunei market, the reality remains that Brunei Darussalam currently lacks expertise in many critical areas, and this agreement will enhance the quality of services provided within the country. At the same time, this will encourage local service providers to become more competitive and deliver higher quality services to consumers, as well as facilitate their entry into the markets of TPP countries.

 Brunei Darussalam's participation in many of these FTAs, including the TPP will bring many benefits to the country, and will support national efforts to promote economic diversification, in line with Brunei Darussalam's national vision, Wawasan 2035. Cognisant that Brunei Darussalam is a small economy with a small domestic market, the government recognises the importance of enhancing the country's ability to attract more foreign direct investment (FDI), which is one of the key tools in encouraging economic growth, not just for capital but also as a tool to facilitate transfer of technology, bring in expertise and promote innovation. The commitments that Brunei Darussalam will eventually undertake as part of this agreement, will facilitate such investments into the country.

Moreover, with the TPP, companies will see Brunei Darussalam as more than just a market of over 400,000.

There is potential and opportunity to use Brunei Darussalam as a base, and to tap into foreign markets where Brunei Darussalam has already established trade links, and this includes not just the members of the TPP, but also our immediate neighbours in the region as well as all of our FTA partners. Ultimately, the goal remains to increase economic activity within the country, in order to spur competitive markets, create jobs, and further uplift the standard of living.

On the queries on whether the TPP will impinge upon Brunei Darussalam's sovereignty, our accession to the TPP will not prevent us from continuing to apply our laws and regulations.

The Ministry of Foreign Affairs and Trade continues to work closely and consult all relevant government Ministries and agencies as well as various stakeholders. The Ministry of Foreign Affairs and Trade further encourages interested members of the public to contact us directly with any concerns, by e-mail on tpp.brunei@mfa.gov.bn.

Thank you.

Ministry of Foreign Affairs and Trade

Dipetik dari - The Brunei Times