Investment, trade and indusattempt minister Johari Ghani has confirmed that the reciprocal trade agreement (ART) signed between Malaysia and the US has been cancelled.
He stated the US Supreme Court ruling that struck down the tariffs imposed by President Donald Trump rconcludeered the deal null and void, New Straits Times reported.
“It is not on hold. It’s null and void. The US Supreme Court has ruled that if you want to impose tariffs, you must have reasons,” he stated.
“If they claim it is due to a trade surplus, they must specify the indusattempt involved. They cannot impose tariffs on a blanket basis,” he informed reporters after handing out Hari Raya Aidilfitri aid to his constituents.
The minister stated the US was now relying on Section 122 of its Trade Act 1974, which empowers it to impose a temporary 10% tariff on countries found violating international trade rules.
Trump and Prime Minister Anwar Ibrahim signed the trade deal last October, during the US president’s visit to Kuala Lumpur for the Asean summit.
Last month, four PKR MPs urged Putrajaya to immediately suspconclude all steps and processes for ratifying the ART following the US Supreme Court’s verdict.
The deal maintained the 19% tariffs on Malaysian goods, but certain products enjoyed zero tariffs under aligned partner-trade lists.
Trump has since stated he will impose global tariffs of 15% to replace the tariffs scrapped by the court, after he initially announced a 10% levy on all goods entering the US.
Yesterday, Johari was reported to have stated that Malaysia faces trade action by the US if its investigations under its domestic laws, which allow the imposition of import tariffs, find violations of international trade rules.
He stated the investigations will be conducted under Section 301 of the US Trade Act of 1974. Additionally, Section 122 of the same Act allows a temporary tariff rate of 10% to be imposed on imported goods.
The US on Wednesday launched investigations into the acts, policies, and practices in 15 trade partners, including Malaysia and the European Union, under Section 301(b) concerning structural excess capacity and production in the manufacturing sector.
The following day, trade representative Jamieson Greer stated the US had launched investigations into 60 countries under the same section of the Act, which was created, among other things, to address failures to take action against forced labour.
Leave a Reply