KUALA LUMPUR: Give the government space and time to assess the tariff situation with the US, says Datuk Seri Anwar Ibrahim
The Prime Minister told the Dewan Rakyat that US President Donald Trump could use other provisions under the law to implement tariffs, despite the country’s Supreme Court striking down his earlier decision.
“Our business is to look at the implications for our country in terms of trade and investment. If the decision we take will benefit the economy and our people, we have to continue (with the Agreement on Reciprocal Trade (ART)),” he said during Prime Minister’s Question Time in the Dewan Rakyat on Tuesday(Feb 24).
“We cannot rush for a decision to be made,” he added.
He also said there is no ratification date so far.
Earlier, Trump invoked his authority under Section 122 of the Trade Act of 1974 to impose a 15% tariff.
Anwar said the US administration still had room to invoke Section 232 and Section 301 of the US Trade Act of 1974 to impose tariffs.
“We do not know whether the US Congress will agree with the Supreme Court or have differing views. That too could not be ascertained. I believe the executive orders on these new global tariffs must be monitored closely,” he added.
Anwar said the temporary tax, which will be in effect for 150 days, will benefit the country because it is lower than 19% under ART.
Anwar said the government does not want to make any hasty decisions that could potentially jeopardise the country’s trade interests as the US is a key trading partner. Malaysia’s exports to the country stood at RM233.1bil, and total bilateral trade between Malaysia and the US amounted to RM367.5bil.
"Nevertheless, I agree that we should closely monitor the situation and assess the impact, as well as any follow-up actions by the President, whether there are additional provisions that may be invoked to avoid interpretations by the Supreme Court, and the stance of Congress in the near term,” he said.
He was responding to a question by Datuk Rosol Wahid (PN-Hulu Terengganu) on Malaysia’s position after the Supreme Court’s decision.
Rosol had also asked in his supplementary question whether action will be taken against former investment, trade and industry minister Tengku Datuk Seri Zafrul Abdul Aziz for hastily going ahead with the agreement, to which Anwar replied that the government will uphold the decision as it takes into account the national interest.
“Malaysia is a trading nation, and under the provisions in question, we can defend them, including provisions that safeguard national security and the country’s economic interests. This is quite clear, in my understanding, that maintaining any existing provisions does not override Malaysia’s national security or economic interests,” he said.
"In my view, this is sufficient. However, if these provisions are still challenged, that poses no problem,” he added.
"At present, the Honourable Member and several other Members have brought the matter to court, so we should let the courts interpret it. I have no objection at all, whether the outcome favours the initial claimant or the government’s previous position, because all seventeen agreements were approved and contain provisions that are both similar and different,” he added.
Five Perikatan Nasional MPs including Rosol had filed an originating summons to seek a Federal Court ruling on key constitutional issues regarding the validity of the ART agreement, which they allege was signed without proper parliamentary approval.
