Malaysia agrees to reduce tariffs on over 98% of US import items, says Zafrul
KUALA LUMPUR (Aug 1): Malaysia has agreed to reduce tariffs on 98.4% of US products as a result of negotiations to get a lower tariff, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz.
In speaking about the tariff barrier aspect of Malaysia’s offer to the US, Zafrul outlined that Malaysia offered a reduction or elimination of 11,260 out of 11,444 tariff lines.
“We made a comprehensive offer that covers 98% of all tariff lines. There are many tariff lines,” Zafrul told the press on Friday.
Meanwhile, of these 11,260 products Malaysia agreed to reduce tariffs on, tariffs on 6,911 or 61% have been eliminated.
Zafrul noted that Malaysia’s existing tariff lines with 0% duty already stood at 6,567, mostly comprising industrial products. In essence, Malaysia exempted tariffs on an additional 344 tariff lines.
He underlined the US had requested for levies on 191 agricultural products and 1,347 industrial products to be removed.
A Ministry of Investment, Trade and Industry spokesperson said the figures are still indicative and will be finalised in a joint statement.
On the other side, Zafrul noted the US is open to removing tariffs on upstream agricultural goods or commodities, or on goods that cannot be produced domestically in the US — such as cocoa, rubber and palm oil.
The full list of the new tariff lines is set to be released later.
Zafrul said a joint statement between Miti and the US Trade Representative will be issued over the weekend to disclose further details of the tariff deal.
Semiconductor, pharmaceutical product exemptions remain
Meanwhile, Zafrul clarified that US import tariff exemptions for Malaysian semiconductor and pharmaceutical products will remain.
Sector-specific tariffs under Section 232 of the US Trade Expansion Act are currently undergoing a study on fairness, slated for completion in December.
Until then, it is understood that the status quo will remain for sector-specific tariffs.
The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.
Comments
