Malaysia stands firm on key national policies in US trade talks - PM

KUALA LUMPUR: Malaysia was among the few countries that stood firm on protecting key national policies during trade negotiations with the United States (US), Prime Minister Anwar Ibrahim told Parliament on Tuesday.

AI Brief

Malaysia rejected US demands to alter its Bumiputera policy but still secured a 19% tariff rate on exports.
Prime Minister Anwar emphasised protecting national interests while avoiding higher tariffs that could hurt the economy.
Malaysia remains open to trade concessions with the US and other partners like China to safeguard its trading position.

Anwar said Malaysia rejected several US demands, including challenges to the country's pro-Bumiputera policy, an affirmative action programme that benefits the majority ethnic Malays and other indigenous communities.

"We still managed to secure a 19 per cent tariff rate. Most importantly, we defended the Bumiputera policy, which the US considers discriminatory and contrary to international trade principles.

"But we stood firm, Malaysia must uphold this policy, and in the end, it was accepted," he said during ministerial question time in the Dewan Rakyat.

Anwar said that while Malaysia maintained its position on non-negotiable issues, it took a pragmatic stance on others, particularly those involving trade mechanisms such as import and export regulations.

"I didn't want to risk tariff rates of 25 per cent or even 40 per cent. Malaysia is a trading nation, and the US is one of our major trade partners. It's easy to score symbolic victories at home, but the country could suffer and hundreds of thousands of people would feel the impact. As Prime Minister, I have to protect the people's interests," he said.

He added that the government was willing to make concessions where possible, not only with the US, but also with other trading partners, including China.

-- BERNAMA