Chapter 3 - Report of the Research and Policy Development Group (iv) Tariff reductions On tariff reductions, a MITI representative said consultations had been conducted with every level of industry, and with trade bodies and SMEs. It said there had been mixed opinions on the issue of tariff reduction. It was noted that such tariff would not be reduced in the Investment chapter, in order to protect Malaysian industries. MITI gave the assurance that the interests of SMEs will be protected during the FTA and TPPA negotiations. (v) Experiences of other countries MITI said it is aware of the impact of FTAs on other countries. It has also been continuously told by the Attorney-General’s Chambers to be mindful of such consequences. (vi) Human Rights Impact Assessment study The Commission requested MITI to conduct the study, explaining that it lacks the capacity and funding to undertake the task. (c) Final Report of the UNDP/MITI on Malaysia’s Options in the TPPA+ Negotiations On 26 July and 7 August, the Commission’s representatives6 viewed the Final Report dated 30 November 2010.7 The Commission’s Observations (i) The overall objective of the Final Report was to inform the Government about the potential impact on the economy from Malaysia’s participation in the TPPA+. The report assessed the US objectives by examining existing FTAs to which the US is party. It further assessed the impact of Malaysia’s decision to enter into the Agreement, in particular the acceptance of commitments on selected issues, goods and services that would arise upon implementation. (ii) Generally, the report focused on 15 impact areas comprising tariff liberalisation, non-tariff liberalisation, textile and cloth, agriculture and security, investment, trade in services, financial services, competition policy, government procurement, intellectual property rights, labour, environment, cooperation and capacity, regulatory coherence, SMEs and connectivity. (iii) The report appears to provide a balanced overview on the effects of FTAs on existing government policies, economic growth and on the public at large. It alerted the Government to several areas where informed decision-making will be pivotal, in particular on issues of tariff liberalisation on rice and agricultural products; and intellectual property rights in connection with pharmaceutical products. It recommended that, at an appropriate point in the negotiations, Malaysia should conduct a comprehensive National Interest Analysis 6 7 The delegation on 26 July 2012 comprised Commissioner Muhammad Sha’ani Abdullah, Nurul Hasanah and Paremeswari Subramaniam; on 7 August 2012, the representatives were Nurul Hasanah and Paremeswari Subramaniam. Jointly prepared by Dr Craig Van Grasstele, Dr Hedi Bchir, Dato Ooi Say Chuan and Dr Sieh Mei Ling; Report dated 30 November 2010 93