KUALA LUMPUR (Reuters) -Malaysia is open to negotiate with the United States on non-tariff barriers and reducing its trade deficit and will explore a bilateral trade agreement, its trade ministry said on Friday.
Malaysia will explore alternative ways to address U.S. concerns and will ensure that the mutually beneficial trade flows between both countries continue, it said in a statement following Trade Minister Tengku Zafrul Aziz’s visit to the United States this week.
Malaysia is facing the imposition of a 24% tariff rate in July for its goods exported to the U.S., unless an agreement is struck between both countries. Tengku Zafrul met with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer in Washington, the ministry said.
Countries in export-driven Southeast Asia have been hit with steep tariffs, with six of 10 listed nations from the region slapped with levies of between 32% and 49%.
Malaysia has said that it will not take retaliatory action against Washington and is ready to collaborate to address its concerns.
“These meetings are a step in the right direction. We will continue to keep the momentum by following up urgently on some of the key issues discussed within the 90-day period since the pause started,” Tengku Zafrul said.
“We also stressed that all communications lines remain open and we will continue to work towards an amicable solution to this reciprocal tariff matter,” he added.
Malaysia’s central bank governor on Wednesday said his country would need to mark down its growth forecast of 4.5% to 5.5% for the year due to trade and tariff uncertainties, but was in no rush to do so.
The ministry said the Washington discussions also centred on how the United States can work more closely with the Association of Southeast Asian Nations, especially in view of Malaysia chairing the 10-member bloc this year.
(Reporting by Ashley Tang; Editing by Martin Petty)
Comments