Kuala Lumpur: Investment, trade and industry minister Tengku Zafrul Aziz today said that Malaysia would not accept a trade deal with the US for the sake of it, and that any agreement must ultimately benefit the country.
“If we can strike a deal that benefits Malaysia, its companies and the economy, then we will say yes.
“But if the deal doesn’t benefit us, we must be firm. Negotiations should not begin with the intention of conceding everything. That’s not how negotiations work,” he said at a press conference today.
Tengku Zafrul was asked about negotiations with the US to reduce the 25% tariff on Malaysian goods effective Aug 1.
He said any tariff reduction must be matched with a careful analysis of what Malaysia would be giving in return, and that “trade-offs” must be factored in.
He said the US would not reduce tariffs without reciprocal concessions.
“So we need to evaluate if we give in to a request, what is the impact on Malaysia? If the balance is positive, we may proceed. But if the impact is negative, we must say no.”
He also said that Malaysia was taking a long-term view, with negotiations focused on issues vital to the country’s future competitiveness.
“Whatever we offer the US must be consistent with what we offer others,” he said, referring to Malaysia’s other trade partners.
“We must be fair and balanced – it’s not as simple as just reducing tariffs.”
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