Investment, Trade, and Industry Minister Johari Abdul Ghani yesterday was reported as confirming that the Malaysia-US agreement on reciprocal trade was no longer in force, which courted mixed reactions.
This came after the US Supreme Court struck down most of the country's tariff measures.
"It is not on hold. It is no longer there, it's null and void," he was quoted as saying by New Straits Times.
He also appeared to affirm that instead of the 19 percent tariff rate agreed to in the deal, Malaysia is now only subjected to the 10 percent global tariff that the Donald Trump administration temporarily imposed following the Supreme Court ruling.
Johari said Malaysia was keeping a close eye on US investigations into Malaysia and other countries that could be used to justify further tariff increases.
Slice of US$166b
Former attorney-general Tommy Thomas and former finance minister Lim Guan Eng lauded the development.
Thomas said it brought to an end a lopsided deal, adding that he hoped the government learned not to rush into any agreements in the future.
Meanwhile, Lim asked whether Putrajaya would be seeking a slice of the US$166 billion (RM653 billion) in tariffs collected that the US international trade court judge ordered Washington to refund.
"The Malaysian government should tabulate how much of the US$166 billion in tariffs collected were paid by Malaysian companies and assist these companies to claim back their tariff refunds and interest," he said in a statement today.
Contrary to Trump's assertions, tariffs were paid by companies in the US importing foreign goods and not by exporters from other countries.
PN: Explanation in Parliament vital
Perikatan Nasional was more cautious in its response to Johari's remarks.
Newly minted coalition secretary-general Takiyuddin Hassan said PN wants the government to provide a comprehensive explanation about the actual status of the deal, its economic and diplomatic implications, as well as efforts being taken to safeguard national interests.
He said PN also wants the government to call for a special Parliament sitting so that Putrajaya can brief MPs on the development as well as allow lawmakers to debate the implications.
"Parliament must also be informed of any commitments or concessions that may have been made during earlier negotiations, including matters affecting the future direction of Malaysia-US trade relations.
"Such a step is vital to ensure transparency and accountability, while enabling Parliament to perform its proper role in scrutinising the direction of Malaysia’s trade policy and protecting the country’s long-term economic interests," he said in a statement today.
The Malaysia-US trade agreement was signed last October and codified tariffs on Malaysian exports at a rate of 19 percent, instead of the 24 percent originally imposed.
However, the deal was heavily criticised as favouring the US. This included questions about the wording of one clause, which critics interpreted as requiring Malaysia to mirror US sanctions.
Parliamentary oversight
Meanwhile, a group of eight PKR lawmakers urged Putrajaya to seek official confirmation from the US that the trade deal has been cancelled.
In a statement, the lawmakers, including Pandan MP Rafizi Ramli, Wong Chen (Subang), and Nik Nazmi Nik Ahmad (Setiawangsa), said the matter should be clarified to leave no room for interpretation by the US government.
“We propose that the Malaysian government formally write to confirm the cancellation of the trade deal and seek the official agreement of the US government that the agreement has indeed been terminated.
“We do not want this matter to remain unresolved, leaving Malaysia exposed to various interpretations of the agreement by the US government, especially if there is a change of administration in the future.
“Therefore, we call on the investment, trade, and industry minister to issue an official statement clarifying the above matters as soon as possible and confirming that the cancellation of the agreement has been formally secured through diplomatic channels between the two countries,” the statement said.
Other lawmakers who signed the joint statement are Lee Chean Chung (Petaling Jaya), Bakhtiar Wan Chik (Balik Pulau), S Kesavan (Sg Siput), Rodziah Ismail (Ampang), and Zahir Hassan (Wangsa Maju).
The MPs also called for the Parliamentary Special Select Committee (PSSC) on Trade and International Relations to carry out an investigation into the manner in which Putrajaya signed the agreement with the US.
They said the government had dismissed views that advised it not to rush into signing the deal, and Putrajaya ended up signing an agreement that was “seen as one-sided, disadvantageous, and detrimental to the country’s sovereignty.”
“The investigation may include the following: summoning key individuals involved in the signing of the trade deal, particularly former investment, trade, and industry minister Tengku Zafrul Abdul Aziz to testify before the PSSC.
“Examining stronger safeguards for the future, including ensuring that all trade agreements are accompanied by comprehensive cost-benefit analyses that are accessible to the Malaysian public beforehand; and ensuring that all future trade agreements require approval through a vote in Parliament before being signed,” the group said.
They also urged the government to avoid siding with any geopolitical bloc in the increasingly intense trade and economic competition between China and the US. - Mkini
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