Prime Minister Datuk Seri Anwar Ibrahim said Malaysia will continue negotiations with the United States (US) over the new tariff issue linked to forced labour concerns if the latest decision remains unsatisfactory.
Anwar said the government has taken note of the US announcement regarding the new tariff rate and viewed the development as a relief as Malaysia was placed under a relatively lower rate compared with several other countries.
However, he stressed that further discussions would continue to ensure Malaysia’s interests are protected.
“The negotiations are being continued by Datuk Seri Johari Abdul Ghani (Investment, Trade and Industry Minister). If we do not receive a satisfactory response, we will raise the matter again.
“At least we are relieved because the tariff is relatively low compared with many other countries,” he told reporters after attending the National Spirit Programme at the Basic Training Centre of the Malaysian Army (PUSASDA) here today.
Also present were Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, Chief of Defence Force General Tan Sri Malek Razak Sulaiman, Chief of Army General Tan Sri Azhan Md Othman and Deputy Defence Minister Adly Zahari.
The US Trade Representative (USTR) previously announced that Malaysia was among ASEAN countries imposed with a 10 per cent duty under the new Section 301 tariff following concerns that the country had failed to effectively implement and enforce a ban on imports linked to forced labour.
Besides Malaysia, Cambodia and Indonesia were also subjected to the same 10 per cent tariff rate, according to a statement by US Trade Representative Ambassador Jamieson Greer.
The USTR said the measure was introduced under Section 301 of the Trade Act 1974 following an investigation involving 60 economies over alleged failures to enforce restrictions on goods produced using forced labour.
Meanwhile, the USTR also stated that other economies would face a 12.5 per cent Section 301 tariff rate, while Malaysia could be considered for a tariff-rate quota mechanism involving imports from the US to encourage greater use of American cotton and textile products.
