Kuala Lumpur: Malaysia is gearing up for significant tariff negotiations with the United States, with the Ministry of Plantation and Commodities (KPK) underscoring the importance of safeguarding the nation's commodities sector, particularly palm oil.
According to BERNAMA News Agency, Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities, emphasized that while the United States is not the largest consumer of Malaysian palm oil, exports to the US hold substantial strategic value. "We have provided all relevant facts and information to the Ministry of Investment, Trade and Industry (MITI) to be used in the upcoming negotiations. For example, with regard to palm oil, even though the United States is not a major buyer, we still export nearly RM4.9 billion annually to that market," Johari mentioned at the Malaysian Palm Oil Board's Silver Jubilee Gala Night.
Johari highlighted that Malaysia's primary export destinations for palm oil are Europe, India, and China, which together account for over 40 percent of total exports. However, the US remains vital due to significant exports of rubber gloves, wood products, and cocoa, totaling approximately RM20 to RM21 billion annually. These figures underscore the importance of the negotiations for Malaysia's commodities sector, which records total annual exports of around RM186 billion globally.
The minister pointed out the current tariff scenario, where Malaysian palm oil products face a 10 percent tariff plus an additional 24 percent in the US, contrasting with Indonesia's additional 32 percent. "In this regard, we have a slight advantage over Indonesia. But this advantage doesn't mean we can be complacent. We must also continue to strengthen trade relations with other countries," he remarked.
Johari emphasized the necessity for ongoing engagement and diplomatic efforts with major global buyers, considering the vast demand and market potential beyond the US.
Previously, MITI announced the appointment of Deputy Secretary-General (Trade) Mastura Ahmad Mustafa as Malaysia's chief negotiator for the tariff talks, with the US appointing an Assistant US Trade Representative (USTR) to lead their team.
MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz indicated that the negotiations are expected to concentrate on tariff reduction and non-tariff barriers, particularly in the agricultural sector, while also addressing the existing bilateral trade imbalance of US$25 billion.