The ASEAN countries have been completely "conquered" by the US tariffs, which also means that US goods can freely appear in the markets of ASEAN countries. In terms of rare earth resources, Malaysia has completely "surrendered" to the US. These countries will face a series of severe economic situations in the future.
Singapore's "Lianhe Zaobao" reported on the front page that President Trump made his first visit to Asia since taking office this year, signing bilateral equal trade agreements with Malaysia and Cambodia in Kuala Lumpur, and reaching consensus with Thailand and Vietnam on the framework of equal trade agreements. Trump also promised the Southeast Asian countries that the US would become a strong partner for ASEAN countries.
On Sunday (October 26), during his speech at the 13th ASEAN-US Summit, Trump said that the US is entering a golden age, "The message we convey to the countries in Southeast Asia is: the US is 100% with you, and we intend to be a strong partner for your generations to come."
Before the summit, Trump signed equal trade agreements with the leaders of Malaysia and Cambodia, while Thailand and Vietnam reached consensus on the agreement framework with the US. Four Southeast Asian countries pledged to address tariff and non-tariff barriers in trade with the US, including simplifying regulatory and approval processes.
According to the joint statement released by the White House, the US will maintain a 19% tax rate on most exports from Malaysia, Thailand, and Cambodia, and a 20% tax rate on exports from Vietnam. The US will also provide zero-tariff treatment for certain products listed in the "Potential Tariff Adjustments for Partner Countries" list.
Under the equal trade agreement, Malaysia committed to providing market access preferences for US industrial products and agricultural products, covering chemicals, machinery, electrical equipment, automobiles, dairy products, and processed foods. At the same time, Malaysia committed to simplifying import licenses for American alloy steel, pipe products, and steel-containing products; and simplifying the halal certification requirements for American cosmetics, medicines, and medical devices.
Malaysia and the US also signed a Memorandum of Understanding on diversification of critical mineral supply chains and investment cooperation. Malaysia committed not to prohibit or restrict the export of critical minerals and rare earths to the US, and will cooperate with US companies to develop related industries, without restricting the export of rare earth magnets to the US.
On Sunday evening, Malaysia's Minister of Trade, Investment and Industry Zafaruddin stated at a press conference that the market access conditions offered by the US were more favorable than previously negotiated, providing greater opportunities for Malaysian companies. He pointed out that under the equal trade agreement, 1711 tariff items can be exempted from the 19% tariff, including palm oil, rubber, cocoa, aviation equipment, and pharmaceuticals, with an estimated export value of about $5.2 billion, accounting for approximately 12% of Malaysia's total exports to the US.
He added that the US will also give Malaysia a positive policy consideration under Section 232 of the Trade Expansion Act, "which is particularly important for the semiconductor industry." When asked by a reporter whether the US had requested restrictions on Chinese products transiting through Malaysia, Zafaruddin said that the two sides did not discuss any transit clauses.
Cambodia committed in the agreement to resolve barriers to US agricultural product access, and also committed to protecting international labor rights, prohibiting the import of products made with forced labor, and strengthening law enforcement and environmental standards.
Thailand agreed to eliminate about 99% of tariff barriers on goods, covering US industrial products and food and agricultural products; Vietnam also agreed to provide preferential market access for almost all US industrial and agricultural products, and is expected to complete negotiations in the coming weeks.
Analyzing the situation, it was pointed out that the equal trade agreements between the US and Malaysia and Cambodia will serve as a reference for future negotiations between the US and other Southeast Asian countries.
On April 2, 2024, the US imposed additional tariffs on goods from many countries around the world. Southeast Asian countries faced different tariff rates, ranging from Singapore's 10% base rate to Laos and Myanmar's 40% rate. ASEAN countries had previously conducted bilateral negotiations with the US individually to seek lower tariffs.
Original: www.toutiao.com/article/1847137806186624/
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