KUALA LUMPUR: The Reciprocal Trade Agreement between Malaysia and the United States will be signed during the 47th ASEAN Summit next week.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz described the agreement as fair for both countries.
He stated that the agreement respects the interests of both Malaysia and the United States.
The United States negotiation team has been in Malaysia since last Sunday to finalise the agreement details.
This follows the consensus reached between Prime Minister Datuk Seri Anwar Ibrahim and United States President Donald Trump.
Both nations have presented their positions diplomatically to achieve an equitable outcome.
Malaysia is currently finalising the agreement to ensure it remains balanced.
The minister emphasised that the agreement prioritises Malaysian interests and local companies.
Throughout negotiations, Malaysia consistently protected national interests through MITI.
The government upheld several red lines including bumiputera issues and the halal sector.
Procurement matters were also among Malaysia’s protected interests during talks.
Tengku Zafrul expressed concern about potential issues that might be raised later.
These include tariff matters involving the semiconductor sector.
Other sectors under Section 232 of United States trade law are also of concern.
Discussions have so far focused only on the tariff base.
Section 232 of the Trade Expansion Act allows the United States to impose additional tariffs for national security reasons.
President Donald Trump announced a 100% tariff on certain pharmaceutical products last month.
This tariff applies unless companies establish manufacturing facilities in the United States.
The United States has not yet made any decision regarding the semiconductor sector. – Bernama
