KUALA LUMPUR, Aug 19 — Malaysia’s tariff concessions with the United States will be managed in line with World Trade Organisation (WTO) rules, with exemptions for other countries to be decided on a case-by-case basis, the Dewan Rakyat heard today.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz said agricultural tax exemptions were among concessions offered to the US that led to the reduction of retaliatory tariffs on Malaysian exports from 25 per cent to 19 per cent.
“If we consider similar tax exemptions for other countries simply because they were given to the US, it becomes a decision that must be weighed carefully. Any exemptions, even on the grounds of national security or public interest, are still subject to interpretation and dispute settlement within the WTO and its processes.
“Nonetheless, we must adhere to the principles of fair and equitable trade, ensuring no discrimination against other countries, including our neighbouring nations, and especially those with whom we have Free Trade Agreements,” he said when winding up the debate for the 13th Malaysia Plan (13MP).
He was responding to Putrajaya MP Datuk Mohd Radzi Md Jidin’s question about whether Malaysia would extend the same concessions to other trading nations.
Zafrul described the current global trade environment as “unprecedented”, with many countries setting aside multilateral trade principles to protect economic and political interests.
