Malaysia is set to benefit greatly from the United States (US) decision to reduce tariffs to below 19% on 1,711 Malaysian export products, including palm oil.
Dato’ Dr Ahmad Parveez Ghulam Kadir, Director General of the Malaysian Palm Oil Board (MPOB), stated that the initiative also covers palm oil-based products such as fatty acids and fatty alcohols as well as vitamins A and E, which are mostly exported to the US.
He added that through the new conditions, the costs borne by importers are reduced and directly increase the price advantage of Malaysian products compared to international competitors.
The total export of the products involved is estimated at about $5.2 billion (RM21.9 billion) or almost 12% of Malaysia’s total exports to the US.
The implementation of the new tariffs is expected to begin within about 60 days after the exchange of official documents between the two countries.
According to the Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, the list of products includes palm oil products, rubber, cocoa as well as pharmaceutical components and aerospace equipment.
The government described this change as a major step in strengthening Malaysia's position globally and expanding strategic market access to the world's largest economy.
