The United States (US) is expected to announce the findings of its investigation into Malaysia’s alleged excess capacity within the next three to four weeks.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said the investigation was nearing completion, while Malaysia continued discussions with the US over how excess capacity should be defined.
He said the issue of forced labour was believed to have been resolved, leaving excess capacity as the main matter still being negotiated.
“They are almost finalising the investigation into excess capacity. I think the forced labour issue has been resolved. On excess capacity, this is what we need to negotiate. I will continue explaining to them that we do not have excess capacity,” he told reporters after delivering the keynote address at the 43rd Majeca-Jameca Joint Conference here today.
Johari said Malaysia’s main concern was that the US definition of excess capacity could include production capacity originating from third countries.
“Whatever excess capacity there is, their definition also includes third countries. That is what we need to address. The matter is still being discussed,” he said.
According to Johari, the US had informed Malaysia that the process would take another three to four weeks before undergoing legal review and approval ahead of an official announcement.
“For now, we remain with the current situation,” he said.
Earlier in his keynote address, Johari explained that the current 10% tariff was part of US action involving 60 economies under Section 301 of the Trade Act 1974, with Malaysia among 17 economies subjected to a lower tariff rate.
He said other economies were facing a tariff rate of 12.5%.
“Imagine, we are subject to a 10% rate and we have held extensive negotiations. We have negotiated with the US and explained to them that we do not have excess capacity,” he said.
Majeca refers to the Malaysia-Japan Economic Association, while Jameca stands for the Japan-Malaysia Economic Association.
