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Malaysian PM seeks changes in revised TPP deal to protect weaker economies

Newly elected Malaysian Prime Minister Mahathir Mohamad called for a review of the revised version of the 11-member Trans-Pacific Partnership free trade pact, or TPP, to ensure a more even playing field for weaker economies, the Nikkei Asian Review reported.

Malaysia and other countries are put at a disadvantage by several conditions the U.S. inserted before it pulled out of the original 12-member TPP, Mahathir told the news outlet in an interview.

"Some of the terms in the previous agreement were drawn up by America, which were not good for poor countries," the prime minister said. "It is important to take into consideration the level of development of a country. ... Small, weaker economies must be given a chance to protect their products."

Malaysia is one of the 11 countries, led by Canada and Japan, that inked the landmark accord in March. The pact had been rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, after the U.S. withdrawal.

Mahathir did not reject the importance of agreements like the TPP and did not say whether he would consider leaving the trade pact. However, Mahathir's call for review may lead to a renegotiation of the entire agreement.

"We might have to start from scratch again like when U.S. President Donald Trump exited the original TPP," a Japanese government official told the Nikkei.

The CPTPP will take effect after six members ratify the deal and would not apply to countries that have not done so. Other signatories include Australia, Brunei, Chile, Mexico, New Zealand, Peru, Singapore and Vietnam.

Mahathir, who was voted into power in the May elections on a platform that pledged to root out corruption and improve government finances, said his government must review all agreements entered into by the previous one, including multilateral trade and security pacts, as well as infrastructure deals.

The prime minister also said Kuala Lumpur is reviewing some infrastructure projects involving Chinese contractors, which require large borrowings from China. "We have to reduce it by renegotiating, or even stopping some of the projects," he told the Nikkei.