KUALA LUMPUR: All eight Trans-Pacific Partnership (TPP) members have unanimously agreed to include Malaysia as a full negotiating member of the TPP negotiations, the International Trade and Industry Ministry said in a statement yesterday.

"This would effectively enable Malaysia to be involved in negotiations at the third round in Brunei (this week)," it said.

Current TPP members include Australia, Brunei, Chile, New Zealand, Peru, Singapore, the United States and Vietnam.

"If successfully implemented, the TPP offers an excellent platform to realise the creation of a huge market, encompassing some of the biggest economies in Asia. It also acts to introduce a new dimension in regional trade - one that could potentially change the dynamics of trade and investment between the countries of the Pacific Rim and possibly even world trade," the ministry said.

On Tuesday, President Barack Obama's administration notified the US Congress that it planned to begin free trade talks with Malaysia as part of a broader trade initiative in the Asia-Pacific region.

Reuters reported that the move came as Malaysia also kicked off free-trade talks with the European Union, a chief US export rival in the fast-growing Asia-Pacific region, and as a new poll showed a majority of Americans were wary of trade pacts.

"On behalf of the president, I am pleased to inform the Congress that we intend to include Malaysia in the ongoing negotiations on the TPP Agreement," US trade representative Ron Kirk said in a letter to House of Representatives speaker Nancy Pelosi.

The United States and seven other countries in the Asia-Pacific region launched formal negotiations on the proposed TPP earlier this year.

This would be the second time the United States tried to negotiate a free trade deal with Malaysia.

According to Bloomberg, Malaysia's reluctance to open its rice market and increase access to government contracts were among issues that derailed talks on a bilateral trade deal with the United States in 2007.

"Malaysia, which is engaged in extensive domestic economic reform, has assured us that it is now prepared to conclude a high-standard agreement," Kirk said in the letter to Pelosi and an identical one to the Senate.

Including Malaysia in the proposed TPP would create significant new export opportunities for US manufacturers, service suppliers and farmers, he said.

AFP quoted Kirk as saying that Malaysia already was an important US export destination. Goods and services exported to Malaysia totalled US$10bil in 2009.

Reuters said the announcement, which had been expected for some time, came the same day that the EU launched free trade talks with Malaysia, and one day before the EU will sign a free trade pact with long-time US ally South Korea.

"Europe's aggressive pursuit of free-trade agreements has raised concern in the US business community that they could be put at a competitive disadvantage in global markets if Washington does not move quickly to catch up," Reuters said.

"Business groups are especially frustrated that Congress still has not approved a US-South Korea free-trade pact signed three years ago.

"However, many Americans have become hostile to free-trade agreements, which Obama's predecessor, George W. Bush, made a hallmark of his administration."

Reuters cited a new Wall Street Journal/NBC News poll in which 53% said free trade agreements had hurt the United States, up from 46% three years ago and 32% in 1999.

While there is no formal deadline for completing the talks, supporters hope for a deal by the time that Obama hosts the annual Apec leaders summit in Hawaii in November 2011.

- TheStar.com