Lang
Malaysia's Investment, Trade and Industry Minister Tengku Zafrul Aziz said today that Malaysia has secured US tariff exemptions on key exports including palm oil, rubber, cocoa, aerospace equipment and pharmaceuticals. Speaking at a press conference on the reciprocal trade agreement between Malaysia and the United States signed this afternoon, he said: "These exports combined are worth approximately US$5.2 billion, or nearly 12% of Malaysia's total exports to the United States."
According to a joint statement issued after the signing, the United States will maintain a 19% tariff on Malaysian goods, while granting certain products a 0% rate.
Under the agreement, a total of 1,711 products exported to the United States will enjoy tariffs lower than 19%.
It was previously reported that Washington had agreed to consider imposing zero tariffs on selected goods, as well as on automotive and aerospace parts, at Malaysia's request during earlier negotiations.
Tengku Zafrul said Malaysia's commitments under the agreement would also be taken into account by Washington when making decisions under Section 232 of the US Trade Expansion Act of 1962, which could affect products such as semiconductors.
He also said the agreement would benefit Malaysian industries by lowering tariffs on imports of US goods, making high-quality products such as medical equipment, IT devices and machinery parts more accessible to businesses and consumers.
He added: "For example, various imports of advanced machinery, aerospace components and automation tools from the United States can be used as inputs to help Malaysian manufacturers improve efficiency and move up the industrial value chain, in line with the goals of the New Industrial Master Plan."