[UPDATED] Tengku Zafrul: Malaysia secured better trade terms from US

KUALA LUMPUR: Malaysia has secured improved trade terms from the United States (US), including the exemption of 1,711 tariff lines from the 19 per cent tariff that the US imposed on Malaysia, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the exemption covered major exports such as palm oil, rubber-based products, cocoa, aircraft components and spare parts, and pharmaceuticals – sectors that collectively account for US$5.2 billion, or about 12 per cent of the country’s total exports.

Tengku Zafrul said this during a press conference on the Malaysia–US reciprocal tariff agreement.

“Through a combination of tariff concessions and commercial commitments, we have secured a reduction in tariffs from 25 per cent to 19 per cent.

“We have also obtained a better commitment from the US on the exemption of 1,711 tariff lines from the 19 per cent tariff,” he said.

Tengku Zafrul said this would ensure continued competitiveness for Malaysian exports in the US market.

“The US is one of our largest trading partners and a key destination market for Malaysia’s major exports, including electrical and electronic products, industrial equipment, aerospace components, certain agricultural products and commodities.

“By offering broader and more strategic tariff liberalisation, we are not only strengthening bilateral trade relations, but also securing better and more assured access to the vast US market,” he said.

Malaysia and the US signed a new reciprocal trade agreement in the afternoon to strengthen bilateral relations, broaden market access and boost supply chain resilience.

A joint statement published on the White House website said the deal was built on the 2004 Trade and Investment Framework Agreement that granted US exporters significant preferential access to the Malaysian market for industrial and agricultural goods.

In return, the US would retain a 19 per cent tariff on Malaysian exports under Executive Order 14257, while applying zero tariffs on selected products from Malaysia classified under an aligned partners category.

Tengku Zafrul said the agreement officially formalised arrangements that had been previously agreed upon, and which he had outlined in Parliament and to the media on several occasions.

“In fact, the US has offered better and more secure access to its market. Therefore, what has been signed today is actually an improvement over what was previously announced,” he added.

© New Straits Times Press (M) Bhd

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