Kuala lumpur: The United States is anticipated to view the Agreement on Reciprocal Trade (ART) positively in upcoming negotiations, particularly in critical national sectors like semiconductors, according to Investment, Trade and Industry Minister (MITI) Tengku Datuk Seri Zafrul Abdul Aziz. He emphasized that discussions are still ongoing regarding sectoral tariffs, where, under Section 232, the US has indicated further talks are necessary for several strategic sectors.

According to BERNAMA News Agency, Tengku Zafrul highlighted the broader implications of the trade agreement. The 1,711 product categories covered under the trade agreement’s tariff schedule represent approximately 12 percent of Malaysia’s total exports by value. These products are set to be exempted from the current 19 percent tariff, potentially increasing the scope of trade.

Tengku Zafrul asserted that this agreement positions Malaysia as a reliable and trusted partner in the US supply chain, particularly in strategic sectors such as semiconductors, aerospace, and pharmaceuticals. He noted that the agreement will bolster Malaysia’s local ecosystem and industries involved in supply chains to the US, especially as supply chain security becomes increasingly vital to economic security.

The minister responded to criticism from certain groups suggesting that the tariff exemption deal favors US importers more than Malaysia. Malaysia and the US signed the ART on October 26 during the 47th Asean Summit in Kuala Lumpur, allowing up to 1,711 Malaysian products, including palm oil, rubber, cocoa, pharmaceutical components, and aerospace equipment, to be exported to the US at reduced tariff rates.