Malaysia Grants US Trade Concessions but Upholds Halal Standards and Excise Duties

Malaysia has agreed to several trade concessions to maintain strong economic ties with the United States, its largest export destination. Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz said the move aims to protect Malaysia’s export-driven economy and up to 100,000 jobs, especially in Penang and Kedah. In response to US requests, Malaysia will reduce or eliminate import duties on 98.4% of tariff lines and remove discriminatory sales taxes on US agricultural imports. However, excise duties remain unchanged. Malaysia also pledged not to introduce a digital service tax that discriminates against US firms. Semiconductor exports remain under US review.

Trade Concessions

Malaysia will only accept meat and poultry imports from the United States if halal certification is issued by bodies already recognised by JAKIM, Zafrul confirmed. He stressed there would be no compromise on halal standards and all imports must comply with Syariah principles. The streamlining of certification and registration processes aims to facilitate trade, not bypass halal regulations. Zafrul dismissed claims that Malaysia would automatically recognise US halal certifications as false and misleading, reaffirming that all imports must adhere to Malaysia’s existing halal and food safety laws. – give a headline

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