Minister says US expected to view ART trade deal favourably, particularly for semiconductors and aerospace, strengthening Malaysia’s supply chain role
KUALA LUMPUR: The United States is anticipated to view the Agreement on Reciprocal Trade (ART) favourably in upcoming negotiations, particularly concerning strategic national sectors like semiconductors.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz noted that discussions continue regarding sectoral tariffs under Section 232.
He stated the US has indicated further talks are needed for several other sectors it deems strategic.
“The 1,711 types or categories of products covered under the trade agreement’s tariff schedule cover around 12% of our total exports by value,” he said in a post on X today.
Tengku Zafrul added these products will subsequently be exempted from the 19% tariff.
“We have demonstrated through this agreement that Malaysia is a reliable and trusted partner in their supply chain, especially in strategic sectors such as semiconductors, aerospace, pharmaceuticals, and others.”
The minister said the agreement reflects Malaysia’s role as a dependable supply chain partner for the US.
He emphasized this will further strengthen the local ecosystem and industries involved in supply chains to that country.
Supply chain security has become an important aspect of economic security, according to the minister.
Tengku Zafrul was responding to groups believing Malaysia’s tariff exemption deal benefits US importers more than Malaysia.
The agreement covers approximately 1,700 product lines for export to the US.
Malaysia and the US signed the ART on October 26 during the 47th ASEAN Summit in Kuala Lumpur.
It allows up to 1,711 Malaysian products to be exported to the US at reduced tariff rates.
These products include palm oil, rubber, cocoa, pharmaceutical components and aerospace equipment.
They will benefit from reduced rates from the current 19% tariff. – Bernama
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