Malaysia aiming for zero-rated tariffs on exports to US, says Tengku Zafrul

The Star

Malaysia has told the United States that it aims to have zero-rated tariffs for imports from Malaysia, says Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.  He also said that among the demands of the United States during its recent negotiations with Malaysia was to safeguard its technology, increase investment in strategic sectors and to reduce the trade imbalance.  Read more at http://rb.gy/z5o6y3   WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

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00:00There are several points from the session of the parliament today.

00:03In the US, we say that the objective is not only to reduce, but we want to go to zero.

00:14If possible, there is no price in our country.

00:18And in our opinion, we will continue to reduce the objective to reduce.

00:27So, the objective is to make sure that we are not to reduce, especially in the sector-sector that is important for our country.

00:38So, the US is correct?

00:40They agree if there are issues regarding issues that they can do.

00:47In negotiations, there is a win and win.

00:51We have to give and take.

00:53We have to reciprocal.

00:55And the first part is to talk about scope and issues that need to be discussed.

01:03And I want to make a difference here.

01:05We have to sign the NDA.

01:08So, Puan Masura, as our chief negotiator,

01:13we will start this evening with USTR.

01:22So, Puan Masura, what are Washington's demands?

01:27Washington demands, I think there are four areas.

01:29Number one is to talk about the trade imbalance.

01:33From the formula, you can see that the trade imbalance to them, which means trade deficit,

01:38is not something that they look favourably to.

01:41And Malaysia, based on their data, has a trade deficit, or they have a trade deficit,

01:47with Malaysia amounting to $25 billion.

01:50Secondly, on the report, the NTE, the issue by USTR,

01:55talks about the non-tariff barriers.

01:57So, on non-tariff barriers, there are many issues that they feel can be improved.

02:02And these are some of the things which they wanted us to look at.

02:06And today, in Parliament, we discussed, for example, the issue of halal.

02:10It's not about the halal certification, but the process itself.

02:13Why it's taking longer than other certifications, for example.

02:17And that's deemed as non-tariff barrier.

02:20The third one is issue about safeguarding technology, technology security.

02:25This is, again, I think, been widely mentioned by the Trump administration on the importance of

02:32US technology not being used by parties which they don't approve to.

02:39That's why they have this export restriction on chips, for example.

02:42So, whatever chips that comes to Malaysia, or to Indonesia, or even Singapore,

02:49they want to make sure that countries like Malaysia, Singapore, or Indonesia

02:53do not allow those chips to be shipped or smuggled to other nations.

02:59Similarly, even the usage. So, it's about technology safeguarding.

03:02And finally, I think what's also important is really when you look at the investment itself, right?

03:10So, they want to see that Malaysia, we do invest in areas where they want us to support their industries.

03:21In this case, we are. We are investing a lot.

03:24Today, the Prime Minister mentioned, even the GLCs alone, the government-linked investment company,

03:30GLICs alone, today has invested close to 45 billion US dollars into the bond and equity markets in the United States.

03:40Is transshipment one of the issues as well?

03:43Yes, transshipment is one issue. That's why today there's always been an issue.

03:51That's why the imposition on solar, for example.

03:55So, today, we have made an announcement just now that any issuance of certificate of origin for products that is going to the United States

04:05are no longer under the domain of the chambers.

04:10We've given authority to the chambers before this, but now is under the authority of BT.

04:18Because under the FTA, we have the authority, but because US and Malaysia, we do not have an FTA,

04:24so that's why we allowed the chambers to issue.

04:28But given the cases that have been widely reported, and we've done some initial investigation,

04:34we feel we have to do this, and we have to audit and do more checkings.

04:39And in the meantime, during this period, when investigation is ongoing, we have to take back that power.

04:45Is there a value to the alleged transshipment?

04:48Well, we're still working on that.

04:50When do you think the Chinese startup may...?

04:55May the 19th.

04:56Yeah.

04:57It will...

04:58Either May 19th or 20th, it will be done virtually.

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