The ASEAN grouping is pushing to forge a common position in trade talks with the United States as the region grapples with debilitating tariffs, supply chain pressures, and the thorny issue of transhipment. – BERNAMAPIX
KUALA LUMPUR: ASEAN is actively working to establish a common negotiating position in trade discussions with the United States as the region confronts challenging tariffs, supply chain disruptions, and complex transhipment issues.
Former Ministry of International Trade and Industry secretary-general Tan Sri Dr Rebecca Sta Maria emphasised that ASEAN must reinforce supply chains and rules of origin regulations due to ongoing transhipment worries.
She stated that ASEAN requires a unified stance on transhipment management, which remains a key topic within the ASEAN Geoeconomics Task Force’s current deliberations.
Transhipment involves transporting goods through an intermediate location before they reach their ultimate endpoint.
Rebecca, serving as an expert on the task force, confirmed that research incorporating rules of origin analysis is undergoing review, though specific findings remain confidential for now.
Malaysia, Thailand, Vietnam, and Indonesia are presently engaged in separate tariff negotiations with the United States despite ASEAN permitting bilateral agreements.
Rebecca stressed the urgency of finalising these trade arrangements quickly to provide businesses with essential transparency and predictability.
She advocated for flexible arrangements that accommodate future negotiations while ensuring clear terms for Malaysia’s critical semiconductor exports.
Rebecca noted that American companies constitute the majority of exporters for these products, making stable trade rules mutually beneficial.
She recommended viewing tariff challenges as an opportunity to enhance Malaysia’s domestic trade environment through regulatory improvements.
Rebecca urged policymakers to scrutinise non-tariff barriers, simplify administrative procedures, and reduce bureaucratic obstacles for businesses.
She highlighted the importance of focusing on ease of doing business reforms from Malaysia’s national perspective alongside addressing external trade pressures. – Bernama