PETALING JAYA: RAM Ratings is of the view that the Trans Pacific Partnership Agreement (TPPA) has an underlying ability to gradually change business environments and firms operating in related member markets in the lead-up to its implementation.
“We believe that these changes, which are relatively harder to quantify empirically at this juncture, will be more significant than the actual impact on trade,” the rating agency said in a report entitled “TPPA: Liberalisation Benefits Outweigh Trade Flow Effects” yesterday.
RAM Ratings said that although the TPPA may be a free trade agreement (FTA) at face value, further scrutiny reveals that it encompasses all facets of doing business, from the explicit rules and regulations on how trade and industrial activities are conducted to the intrinsic effects on labour and investment dynamics.
“As the governments of the individual member countries move towards ratification, the principal outcome will be the alignment of the corresponding changes in business operations with more efficient and competitive processes and activities, to fully reap the benefits of being part of this group,” it added.
Source: The Sun Daily