KUALA LUMPUR, Oct 15 — The Reciprocal Trade Agreement to be signed between Malaysia and the United States (US) during the 47th Asean Summit next week is fair for both parties and considers their respective interests, said Investment, Trade and Industry Ministry Tengku Datuk Seri Zafrul Abdul Aziz.
He said US negotiators have been in Malaysia since Sunday to finalise the agreement following a consensus between Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump.
“Both countries have presented their positions diplomatically and systematically to achieve a fair and equitable outcome for both sides.
“We are finalising this agreement to ensure it is balanced and prioritises the interests of our people and local companies,” he said during the Ruang Bicara programme on Bernama TV yesterday.
He said that throughout the negotiations with the US, the Malaysian government — through the Investment, Trade and Industry Ministry (MITI) — has consistently prioritised the interests of the people and local businesses, including upholding several red-line issues such as Bumiputera rights, the halal sector, and procurement.
Tengku Zafrul also expressed concern over several issues that may be raised, including tariffs on the semiconductor sector and others under Section 232.
“So far, discussions have only focused on base tariffs,” he said.
Section 232 of the Trade Expansion Act of 1962 allows the US to impose additional tariffs on national security grounds.
On September 25, Trump announced on his Truth Social account that Washington would impose a 100 per cent tariff on branded or patented pharmaceutical products unless the companies build their manufacturing facilities in the US.
However, the US has yet to make a decision on the semiconductor sector.
