KUALA LUMPUR: Malaysia has told the United States that it aims to have zero-rated tariffs for imports from Malaysia, says Tengku Datuk Seri Zafrul Abdul Aziz.
"We told them we want to reduce the tariffs – and if it's possible – for it to be zero," said the Investment, Trade and Industry Minister.
He also said that among the demands of the United States during its recent negotiations with Malaysia was to safeguard its technology, increase investment in strategic sectors and to reduce the trade imbalance.
Tengku Zafrul explained that the United States claimed it has a US$25bil trade deficit with Malaysia, based on their data.
He said another issue was that the United States wanted to safeguard its technology from being used by other parties the country does not approve of.
"That is why they have export restrictions on chips that come to Malaysia, Indonesia or Singapore and they don't want these chips to be smuggled to other nations," he said during a press conference in Parliament on Monday (May 5).
Tengku Zafrul also said that the United States would like to see Malaysia investing in certain strategic sectors there.
"Government-linked companies alone to date invested close to US$45bil in bond and equity markets in the United States.
"They feel many issues can be improved and these are some of the things they want us to look at," he added.
Tengku Zafrul also said that the United States wants Malaysia to address any trans-shipment offences.
"That is why we announced that certificates of origin is in the authority of my ministry," he said.
He said trade negotiations with the United States would officially begin on Tuesday (May 6).
On April 22, Tengku Zafrul led a delegation to Washington DC for a three-day mission, which included meetings with US trade representative Jamieson Greer and secretary of commerce Howard Lutnick.
