KUALA LUMPUR (July 9): Malaysia stood by certain “red lines” during trade talks with the US, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said.

Negotiations have not failed and the government merely needs more time to broker a deal that benefits Malaysia, Zafrul said at a briefing on Wednesday. The non-disclosure agreement signed, however, prevented the government from revealing details of the negotiations, he said.

“The key takeaway is that we stood firm on what we needed to stand firm on,” Zafrul said. “For every single commitment negotiated, we always asked ourselves, ‘On balance, would it be better to have a lower tariff by opening up our market unconditionally on certain products?’”

The government was blindsided on Tuesday when US President Donald Trump announced a 25% import tariff on all Malaysian goods, up 1% from the initial reciprocal tariff proposed in April.

Trump left the door open to negotiations ahead of a new deadline on Aug 1 and Malaysia has said it will continue to talk to the US to address outstanding issues, clarify the scope and impact of the announced tariffs and work towards concluding negotiations.

Malaysian negotiators were prioritising the nation’s interest and the people’s well-being, he stressed.

“Negotiating is about balance and pragmatism,” he added. “Ultimately, it’s not just about the tariff rate; the devil is always in the details.”

The government would have to consider other trading partners who have signed free trade agreements with Malaysia even if a deal was reached with the US, Zafrul noted.

“Whatever we give to the US, we need to give the rest,” he said. “We have to be fair to all.”

An example of the sticking points in the trade negotiation is the halal certification, a barrier to the US’s ambitions to export beef and poultry to Malaysia, Zafrul said.

“Right now, we do not allow the export of beef and poultry from the US and they are asking why,” he noted. “Maybe, when we talk about halal certification, we can look at ensuring the halal standard they have is at par with our standard.”

Other issues brought up during trade talks included digital trade and government procurement, Zafrul noted.

The ongoing negotiation with the US will mainly address unresolved issues as well as other matters on industrial and agricultural products; other non-tariff barriers; labour and environmental standards; and economic security.

Goods involved in the talks cut across machinery and equipment; chemical and chemical-based products; medical devices; iron, steel and aluminium; plastics; automotive; and electrical and electronics.

As for agricultural products, negotiations centred on fruits, grains and rice; live poultry and eggs; meat and offal; milk and dairy products; and alcohol.

Sector-specific negotiations include semiconductors; electrical and electronics; plastics; aluminium; medical devices; automotive; and poultry, dairy and alcohol — most of which are Malaysia’s major export items to the US.

A video conference has been scheduled for Thursday with his counterpart US Trade Representative Jamieson Greer, Zafrul said, adding that he would also attend a meeting between Prime Minister Datuk Seri Anwar Ibrahim and US Secretary of State Marco Rubio.

“Negotiations will proceed,” he concluded.

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