KUALA LUMPUR: More than 11,000 US products coming into Malaysia starting Aug 8 will have zero or reduced tariff rates imposed, says Tengku Datuk Seri Zafrul Abdul Aziz.

The Investment, Trade and Industry Minister said that this was among the concessions requested by the United States during tariff negotiations.

“The United States submitted a tariff list involving 11,260 products.

“Of this, a total of 6,911 products, mainly manufacturing products make a large portion of the list.

“Another 191 products come under the agricultural tariff line.

“This means that about 61% of products (in the list) from the United States will have zero tariffs,” he told reporters at a press conference on Friday (Aug 1).

He noted that 6,567 US products were already on the zero tariff list, which was agreed on during previous negotiations.

He added that about 39% of the US products had their tariff rates reduced.

“This means that we made a comprehensive offer to the United States that covers 98.4% of all tariff lines to eliminate or reduce tariffs,” he added.

He said among the US agriculture products that will have zero tariffs include dairy, poultry products, fruits and sanitary products.

He added the 19% tariffs imposed on Malaysian exports to the United States would be enforced on Aug 8.

On Malaysian semiconductors and pharmaceutical exports to the United States, Tengku Zafrul said that they are exempted from tariffs.

“At the moment, semiconductors and pharmaceutical products from Malaysia have zero tariffs.

“However this is subject to Section 323 of the US Trade Expansion Act.

“The Department of Trade and Commerce in the United States will decide if this is fair,” he said, adding that a final decision will be known by the year’s end.

On halal certification for imported beef and products from the United States, Tengku Zafrul refuted claims that the government had compromised on halal standards imposed by the Malaysian Islamic Development Department (Jakim).

He said that Malaysia would merely facilitate the process with regard to Jakim’s halal certification which will remain syariah compliant.

On Malaysia’s red-line, he said the United States had demanded total liberalisation of equity for strategic sectors and blanket exemption for imported licensing for US products.

Also demanded by the United States, he said, were abolishment of excise duties and import permits for US-manufactured cars.

“For example, they wanted us to abolish excise duty on three big items such as cars, tobacco and alcohol.

“This was a red line for us, which we did not compromise,” he added.

Asked if the United States had demanded exclusive access to Malaysia’s rare earth materials, Tengku Zafrul said that this was not part of the negotiations.

He also said that the country is willing to impose zero tariffs on raw materials exported by Malaysia, which the United States is unable to produce such as cocoa, rubber and palm oil.