KUALA LUMPUR: The Reciprocal Trade Agreement expected to be signed between Malaysia and the United States (US) in conjunction with the 47th ASEAN Summit next week is seen as fair for both parties, taking into account their respective interests, said Investment, Trade and Industry Ministry Tengku Datuk Seri Zafrul Abdul Aziz.
He said the US negotiation team had been in Malaysia since last Sunday to finalise the agreement following the consensus reached between Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump.
"At the same time, both countries have presented their positions diplomatically and systematically to achieve a fair and equitable outcome for both sides.
"Currently, we are finalising this agreement to ensure it is balanced and prioritises the interests of our people and local companies," he said during the Ruang Bicara programme "Empowering the Economy & Tariff Negotiation Strategy" hosted by Datuk Sherkawi Jirim and aired on Bernama TV on Tuesday.
According to him, throughout the negotiations with the US, the Malaysian government - through MITI - has consistently prioritised the interests of the people and local businesses, including upholding several red lines such as issues related to bumiputera, the halal sector, and procurement.
Tengku Zafrul also expressed concern over several issues that may be raised, including tariff issues involving the semiconductor sector and other sectors under Section 232.
"So far, discussions have only focused on tariff base," he said.
Section 232 of the Trade Expansion Act of 1962 allows the US to impose additional tariffs on national security grounds.
On Sept 25, President Donald Trump announced via his Truth Social account that the US would impose a 100 per cent tariff on any branded or patented pharmaceutical products unless the companies build their manufacturing facilities in the US.
However, the US has yet to make any decision on the semiconductor sector. - Bernama
