We’ll protect commodities in tariff talks, says Johari

 Exports of palm oil products to the US were significant and strategically valuable although the US is not the largest buyer, the minister says.

Johari Ghani said Malaysia had a slight tariff advantage over Indonesia for palm oil exports, “but this doesn’t mean we can be complacent”.

PETALING JAYA:

 Officials will make efforts to protect the country’s commodities exports to the US, amounting to about RM20-RM21 billion, when tariff negotiations are held with the United States, a federal minister said.

Johari Ghani, the minister for plantations and commodities, said exports of palm oil products to the US, amounting to nearly RM4.9 billion, were significant and strategically valuable although the US is not the largest buyer, Bernama reported.

Johari said Malaysia’s largest export markets for palm oil currently are Europe, India, and China, which collectively account for over 40% of total palm oil exports.

“We also export rubber gloves (more than RM8 billion annually), wood products (RM6.5 billion) and cocoa (RM1.6 billion),” he told reporters.

The minister noted that Malaysian palm oil products face a 10% tariff plus an additional 24% (currently suspended) compared to Indonesia, which faces an additional 32%. “But this advantage doesn’t mean we can be complacent,” he said.

Malaysia has appointed senior trade official Mastura Ahmad Mustafa as its chief negotiator in the tariff talks with the United States. The negotiations are expected to focus on tariff reduction and non-tariff barriers – especially in the agricultural sector – as well as addressing the current bilateral trade imbalance, which stands at US$25 billion. - FMT