Putrajaya denies Trump claim that M'sia is a 'trade cheat'

Putrajaya has denied US President Donald Trump's accusation that Malaysia is a “trade cheat” responsible for the former's trade deficit.

"The accusation made by Trump against Malaysia that it is among the 'trade cheats' is not true," International Trade and Industry Minister Mustapa Mohamed said.

"Until today, the US administration is yet to issue an official report on the trade deficit of the US and its partners (the Omnibus Report on Significant Trade Deficit).

"The report prepared by the Commerce Department and the United States Trade Representative Office has been sent to the White House for Trump’s consideration," Mustapa (photo) told William Leong (PKR-Selayang) in a written reply in Parliament.

Leong had asked the minister to state the steps taken to defend Malaysia against Trump’s claim that Malaysia was among the "trade cheats" allegedly responsible for the nearly US$50 billion trade deficit of the US.

Mustapa said he and Prime Minister Najib Abdul Razak had, during their visit to the US in September, discussed the trade deficit issue with Trump and his cabinet.

"Our statistics showed (only) a US$5 billion trade deficit while the United States' record showed a trade deficit of US$25 billion.

"On this matter, both the prime minister and I explained the discrepancy in the amounts was because the US took into account imports via a third country,” he explained.

"For example, electrical and electronic products exported to the US via Singapore would be recorded as an import from Malaysia, instead of from Singapore.

Mustapa also noted that Malaysia is committed to free trade, and denied that it manipulated currency or offered any form of assistance in violation of World Trade Organisation laws.

[More to follow]

-Mkini