KUALA LUMPUR: Up to 1,711 Malaysian export products will enjoy tariffs lower than 19% under the Agreement on Reciprocal Trade signed with the United States.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz confirmed the agreement covers palm oil, rubber, cocoa, pharmaceutical components, and aerospace equipment.
These exports collectively amount to about USD5.2 billion, representing approximately 12% of Malaysia’s total exports to the US.
The lower tariffs will take effect within 60 days after both countries complete the required document exchange.
A joint statement confirmed the US identified products to receive a zero per cent reciprocal tariff rate under Executive Order 14346.
The US also committed to maintain reciprocal tariffs at 19% for originating goods of Malaysia as outlined in Executive Order 14257.
Tengku Zafrul expressed satisfaction with the agreement, stating Malaysia did not have to backtrack on any previous agreements.
He noted Malaysia managed to secure better terms on some tariff lines than previously discussed.
The minister confirmed the signed agreement contains the same points previously shared in Parliament.
This official signing marks the conclusion of earlier negotiations, making the deal binding.
The US has provided better market access and commitments compared to previous verbal agreements.
When asked about the deal’s permanence, Tengku Zafrul expressed hope the agreement would hold.
He added that any future changes should ideally be for the better. – Bernama
