Mastura Ahmad Mustafa Appointed Chief Negotiator for Malaysia-US Tariff Talks

In a significant development for Malaysia’s trade relations with the United States, Mastura Ahmad Mustafa, Deputy Secretary-General (Trade) at the Ministry of Investment, Trade, and Industry (MITI), has been appointed as the country's chief negotiator for the upcoming formal tariff negotiations with the US. This significant appointment comes at a time when both countries are seeking to resolve issues concerning tariffs, non-tariff barriers, and trade imbalances.

Who is Mastura Ahmad Mustafa?

Mastura Ahmad Mustafa is one of the most experienced senior civil servants within MITI. With years of expertise in trade and investment, Mastura brings a wealth of knowledge to the negotiating table. Her leadership in these upcoming talks is expected to play a crucial role in shaping the future of Malaysia-US trade relations. As Malaysia's chief negotiator, her responsibilities will include leading discussions on reducing tariffs, addressing non-tariff barriers, and managing the trade surplus with the United States.

The Context of Malaysia-US Tariff Talks

The United States recently announced higher tariffs on imports from several countries, including Malaysia. The tariff rate on most Malaysian goods is set at 24%. In response, Malaysia has advocated for a reduction in these tariffs, aiming to achieve a mutually beneficial level. However, reducing tariffs is just one of the many challenges on the agenda.

Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia's Minister of Investment, Trade, and Industry, confirmed that the US has appointed an assistant trade representative to lead their side of the talks. The discussions will begin once Malaysia’s Cabinet approves the negotiation framework.

Key Issues to Address

The primary focus of the negotiations will be to reduce tariffs between Malaysia and the United States. Although neither country has set a goal of reducing tariffs to zero, they aim to reach a compromise that benefits both parties. A significant part of the talks will also focus on non-tariff barriers, particularly in the agricultural sector, as Malaysia seeks to address trade restrictions that impact its agricultural exports.

Another critical issue is Malaysia’s trade surplus with the US, which currently stands at $25 billion (RM108 billion). Over the past four years, Malaysia has made significant progress in reducing its trade imbalance with the United States by nearly half. This has been a positive development, but both countries are keen on further addressing the trade imbalance during the negotiations.

Impact of the US-Malaysia Tariff Talks

The timing of these negotiations is essential, given that the US recently imposed higher tariffs on imports from approximately 60 countries, including Malaysia. However, the US has allowed a 90-day pause on these "reciprocal" tariffs, providing an opportunity for both sides to engage in trade discussions. Mastura Ahmad Mustafa's leadership will be crucial in ensuring that Malaysia maximizes the opportunities presented by this window.

Tengku Zafrul has emphasized that both sides will discuss various aspects of economic security, especially in areas such as technology and intellectual property protection. The US is particularly concerned about the potential transfer of sensitive technologies, which could be used in ways that are not in its best interest. As part of the discussions, Malaysia may propose a technology safeguard agreement to address these concerns.

Next Steps in the Negotiation Process

The first round of negotiations is expected to take place once Malaysia's Cabinet gives its approval. Following that, discussions will be further deliberated at the National Geoeconomic Command Centre (NGCC) meeting, which the Prime Minister will chair. This meeting will help shape the strategic direction of the talks.

During these talks, Malaysia’s focus will be on addressing both tariff and non-tariff barriers, which are key to ensuring that Malaysian businesses have better access to the US market. Furthermore, the outcome of these discussions will also affect Malaysia’s trade relations with other countries.

Mastura Ahmad Mustafa’s Role in the Negotiations

As the chief negotiator, Mastura Ahmad Mustafa will be at the forefront of these critical trade talks. Her experience and expertise will be instrumental in navigating the complexities of the negotiation process. With a strong background in trade policy, Mastura is well-equipped to address the challenges and opportunities that arise during this high-stakes negotiation.

She will be responsible for representing Malaysia’s interests while working to find a mutually beneficial solution with the US. Her leadership will not only help strengthen Malaysia-US trade relations but also contribute to the broader goals of enhancing Malaysia’s position in the global trade arena.

Conclusion

Mastura Ahmad Mustafa’s appointment as Malaysia’s chief negotiator for the upcoming Malaysia-US tariff talks marks a significant step in the country’s efforts to improve trade relations with the United States. With her extensive experience in trade policy, Mastura is well-positioned to lead Malaysia through the complexities of these crucial negotiations.

As both countries continue to address issues related to tariffs, trade imbalances, and economic security, the outcome of these talks will have far-reaching implications for Malaysia’s financial future. The progress made in these negotiations will help pave the way for more robust and equitable trade relations between Malaysia and the US.