MALAYSIA PREPARED FOR TARIFF NEGOTIATION WITH US, WILL PROTECT COMMODITIES SECTOR – JOHARI

PUTRAJAYA, May 2 (Bernama) -- Malaysia is making thorough preparations for official tariff negotiations with the United States, with the Ministry of Plantation and Commodities (KPK) emphasising the need to protect the interests of the country’s commodities sector, particularly palm oil.

Its minister, Datuk Seri Johari Abdul Ghani, stated that although the United States is not the largest buyer of Malaysian palm oil products, exports to the country remain significant and strategically valuable.

“We have provided all relevant facts and information to the Ministry of Investment, Trade and Industry (MITI) to be used in the upcoming negotiations. For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9 billion annually to that market,” he told reporters at the Silver Jubilee Gala Night of the Malaysian Palm Oil Board (MPOB).

Johari said Malaysia’s largest export markets for palm oil currently are Europe, India, and China, which collectively contribute over 40 per cent of total exports. “But we cannot disregard the United States, because in addition to palm oil, we also export rubber gloves - more than RM8 billion annually, wood products - nearly RM6.5 billion, and cocoa at around RM1.6 billion. Total commodity exports to the United States alone amount to about RM20 to RM21 billion,” he noted.

He added that these figures highlighted the importance of the negotiations for the national commodities sector, which records total annual exports of around RM186 billion worldwide.

The minister noted that Malaysian palm oil products currently face a 10 per cent tariff plus an additional 24 per cent in the United States, compared to Indonesia, which faces a 10 per cent tariff plus an additional 32 per cent. “In this regard, we have a slight advantage over Indonesia. But this advantage doesn’t mean we can be complacent. We must also continue to strengthen trade relations with other countries,” he said.

He stressed the need to continue engagement and diplomacy efforts with major buyers worldwide, given the large demand and market capacity beyond the United States.

Earlier, MITI announced the appointment of Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia’s chief negotiator in the official tariff talks with the United States, with the US naming an Assistant US Trade Representative (USTR) to lead their side.

According to MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz, the negotiations are expected to focus on tariff reduction and non-tariff barriers - especially in the agricultural sector - as well as addressing the current bilateral trade imbalance, which stands at US$25 billion.

-- BERNAMA