MITI To Continue To Engage With US As 10 Pct Forced Labour-Related Tariff On Malaysia Takes Effect
KUALA LUMPUR, July 24 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) will continue to engage with the United States over the 10 per cent forced labour-related tariff imposed on Malaysian exports effective today.
MITI said in a statement today that the 10 per cent tariff started from 12.01 am US time on July 24, immediately following the expiry of the temporary tariff imposed under Section 122 Trade Act 1974.
The US is 12 hours behind Malaysia.
The ministry said Malaysia is among 17 economies subject to the 10 per cent tariff following the US Section 301 investigation related to forced labour, while the remaining economies covered by the probe face a tariff rate of 12.5 per cent.
It said Section 301 investigations related to excess capacity on 16 economies, including Malaysia, remains ongoing.
“The United States Trade Representative (USTR) took into consideration Malaysia's commitments to implement and enforce laws prohibiting the importation of forced labour goods as the basis for the tariff rate imposed on Malaysia,” said MITI.
MITI said it will keep stakeholders informed once the USTR determines the tariff rate related to the Section 301 investigation into excess capacity.
USTR Ambassador Jamieson Greer said in a statement earlier today that Malaysia, Cambodia and Indonesia are among ASEAN countries that are facing the 10 per cent duties under the US' new Section 301 tariffs following failure to impose and effectively enforce forced labour import rules.
According to Moody's Analytics, the new US tariff structure comprises three tiers based on the outcome of the Section 301 investigation into forced labour.
It said a 10 per cent tariff applies to economies that have a forced labour import ban but do not fully enforce it, have made commitments via reciprocal trade agreement, or operate a partial enforcement regime. These include Malaysia, Indonesia, India, Canada, Mexico and the United Kingdom, among others.
Meanwhile, economies with trade agreements with the US are subject to tariff rates of either 10 per cent or 12.5 per cent, including the European Union (10 per cent), Taiwan (10 per cent), South Korea (12.5 per cent) and Japan (12.5 per cent).
The remaining economies in the group of 60 under Section 301 investigation are subject to a 12.5 per cent tariff. These include China, Singapore and Australia.
-- BERNAMA