Us Tariff Reduced Without Compromising Red Lines Says Miti


The ministry attributes the drop in tariff rate to Malaysia's 'thorough and methodical negotiating process'.Investment, trade and industry minister Tengku Zafrul Aziz had said that Malaysia’s halal certification standards were among the non-negotiable issues in the country’s tariff negotiations with Washington.PETALING JAYA: The investment, trade and industry ministry says Malaysia made no compromise on its “red lines” in negotiating a lower reciprocal tariff on exports to the US
In a statement, it attributed the tariff reduction to a “thorough and methodical negotiating process”, adding that the 19% rate roughly tracked the rate of other countries in Southeast Asia.
“Most importantly, Malaysia stood firm on various ‘red line’ items.
“The 19% tariff rate was achieved without compromising the nation’s sovereign right to implement key policies to support socio-economic stability and growth,” it said.
The US previously imposed a 25% tariff on Malaysia effective Aug 1, a rate which president Donald Trump described as “far less” than what was needed to eliminate the country’s trade deficit with Malaysia.
The rate was also higher than the 24% initially imposed on certain Malaysian exports to the US and placed on a 90-day pause, ending yesterday.
Last month, Prime Minister Anwar Ibrahim said Malaysia would not compromise on its Bumiputera policy during tariff negotiations.
Investment, trade and industry minister Tengku Zafrul Aziz later said that Malaysia’s halal certification standards were also among the non-negotiable issues in the country’s tariff negotiations with Washington.
The two issues were cited by the Office of the US Trade Representative as barriers leading to the 24% tariff initially imposed on April 2.
Zafrul said today that the decision by the US reflected its strong and enduring economic ties with Malaysia.
“It is also a testament to Malaysia’s credibility as a reliable trade and investment partner,” he said. - FMT


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