Trump Signs Key Mineral Agreements with Malaysia and Thailand; US-Vietnam to Reach Trade Agreement

While attending the ASEAN Summit in Malaysia, Trump on Sunday, October 26, signed reciprocal trade agreements with Malaysia and Cambodia, and reached a framework trade agreement with Thailand, aiming to jointly address tariffs and non-tariff barriers. The United States and Vietnam are set to finalize a trade agreement, with some Vietnamese goods potentially enjoying tariff-free access.

According to a joint statement released by the White House, the United States will maintain a 19% tariff rate on exports to these three countries and gradually reduce some products to zero tariffs. At the same time, the United States also announced a similar framework trade agreement with Vietnam, where the average tariff on Vietnamese exports to the US is currently 20%.

US-Vietnam to Finalize Trade Agreement; Some Vietnamese Goods May Enjoy Tariff-Free Access

Vietnam stated that it will significantly increase imports from the US to narrow the $123 billion trade surplus between the two countries last year.

The White House said on Sunday that the United States and Vietnam will finalize a trade agreement in the coming weeks. This agreement will maintain a 20% tariff on most Vietnamese goods exported to the US but will eliminate tariffs on certain products, with specific details to be decided in subsequent stages.

Reuters reported that as a return, Vietnam promised "preferential access" for almost all American goods.

The joint statement released by the White House stated that both sides have reached a consensus on the framework of a "reciprocal, fair, and balanced" trade agreement between the two countries. The statement said that this agreement "will provide unprecedented opportunities for exporters from both countries to access each other's markets." In terms of non-tariff barriers, the United States and Vietnam will also cooperate to balance the interests of both countries.

Malaysia Promises Not to Ban Exports of Rare Earths to the US

On Sunday, Trump also signed two agreements with Thailand and Malaysia aimed at strengthening cooperation in the supply chain of key minerals to counter China's competition in this rapidly growing field.

Reuters reported earlier this month that China is negotiating with Malaysia to build a rare earth processing plant in the country, and the Malaysian sovereign fund Khazanah Nasional is expected to establish a refining plant in a joint venture with Chinese companies.

As the world's largest producer of rare earth mining and processing, China has recently implemented stricter export restrictions on rare earth refining technology, forcing global manufacturers to seek alternative supply sources for critical areas such as semiconductors, electric vehicles, and military equipment.

According to the joint statement between the US and Malaysia, Malaysia agreed not to impose a ban or quota on the export of key minerals and rare earth elements to the US. However, the statement did not clearly specify whether this commitment covers raw ore or processed products.

Malaysia is estimated to have about 161 million tons of rare earth reserves. The country currently prohibits the export of raw ore to prevent resource outflow and promote the development of its downstream rare earth industry.

Reducing Tariff Barriers and Expanding Market Access

Before signing the above agreements, Trump also witnessed Thailand and Cambodia sign an enhanced ceasefire agreement aimed at easing tensions following armed conflicts along their border earlier this year.

According to the agreement, four Southeast Asian countries committed to removing trade barriers, providing greater market access for US goods, and making new commitments in digital trade, services, and investment. At the same time, these countries also agreed to strengthen labor rights protection and environmental standards.

The statement pointed out that Thailand, Malaysia, and Vietnam agreed to accept car imports that meet US safety and emission standards. Malaysia also pledged to simplify the halal certification procedures for US cosmetics and pharmaceuticals.

Malaysia's Minister of Trade Aziz said that Malaysia secured tariff exemptions for aviation equipment, pharmaceutical products, and commodities such as palm oil, cocoa, and rubber in the agreement.

Thailand stated that it would remove tariff barriers on approximately 99% of goods and relax foreign ownership restrictions in the US telecom industry. The two countries also confirmed that multiple Thai-US business transactions are underway, including an annual agricultural product procurement plan of about $2.6 billion (such as feed corn and soybean meal).

The statement also mentioned that Thailand committed to purchasing 80 US aircraft, worth about $18.8 billion, and will annually purchase about $5.4 billion in energy products, including liquefied natural gas and crude oil.

Sources: rfi

Original: www.toutiao.com/article/1847103526307840/

Statement: The article represents the personal views of the author.