New trade terms take effect on Aug 8, covering industrial and agricultural goods
KUALA LUMPUR: More than 11,000 US products coming into Malaysia from Aug 8 will have zero or reduced tariffs, Tengku Datuk Seri Zafrul Abdul Aziz announced.
The Investment, Trade and Industry Minister said that this was the concession requested by the United States during protracted tariff negotiations which began in April and concluded yesterday.
“The US list involves 11,260 tariff lines. Of this, a total of 6,911 products are mainly industrial manufacturing products, which made up a large portion of the list.
“Another 191 products fall under the agricultural tariff line.
“This means that about 61% of imported products under the list will have zero tariff,” he told a press conference.
He added that about 39% of the US products under the list saw their tariffs reduced.
“This means we had made a comprehensive offer that covers 98.4% of all tariff lines to eliminate or reduce tariffs,” he added.
“The reduction of tariff is a win-win outcome for both Malaysia and the United States, demonstrating a strong and constructive bilateral Malaysia-US relationship, built over the last 68 years,” Tengku Zafrul said.
The United States had initially requested zero or reduced tariffs on a total of 11,444 US products during negotiations.
Sharing updates: Tengku Zafrul speaking to the media during a press conference in Kuala Lumpur. — MUHAMAD SHAHRIL ROSLI/The Star
He noted that 6,567 US products were already on the zero tariff list which was agreed on during previous negotiations.
Among the US agriculture products that will have zero tariffs, he said, include dairy, poultry, fruits and sanitary products.
He added that the 19% tariffs imposed on Malaysian exports to the United States will also be enforced on Aug 8.
On Malaysian semiconductors and pharmaceutical exports to the United States, Tengku Zafrul said that they are exempted from the 19% tariffs imposed by the United States.
“At the moment, semiconductors and pharmaceutical products from Malaysia which are exported to the United States are exempted from tariffs.
“However, this is subject to Section 323 of the US Trade Expansion Act.
“The US Department of Trade and Commerce will still have to decide if this is fair,” he said, adding that the final decision will be known by the end of the year.
Tengku Zafrul said that the conclusion of the US tariff negotiations will help provide some certainty to exporters and industries in Malaysia.
He said that he will be issuing a joint statement with US Trade Representative ambassador Jamieson Greer on the tariffs soon.
