Latest news with #WorldTradeOrganisation
The Hindu
7 hours ago
- Business
- The Hindu
U.S. trade deals with Japan, Indonesia hold lessons, warnings for India: Experts
The announcements by U.S. President Donald Trump and the White House regarding trade deals with Japan and details of the deal with Indonesia on Tuesday (July 22, 2025) will have significant implications and lessons for a potential trade deal with India, according to officials and trade experts. Mr. Trump on Tuesday (July 22, 2025) announced that the U.S. had completed a 'massive deal' with Japan. Simultaneously, the White House also released the framework for the deal with Indonesia, which had been announced last week. According to Mr. Trump, Japan has agreed to invest $550 billion in the U.S. under the deal, which would create 'hundreds of thousands' of jobs in the U.S. Also, Japanese imports into the U.S. will face a 15% tariff, down from the proposed 25%. Also Read | India-U.S. trade deal: Deadlock over agri continues, but Trump surprise not ruled out Under the deal, Japan has also agreed to import a larger share of rice from the U.S. under its tariff-free quota. According to a World Trade Organisation (WTO) minimum access framework agreement signed in 1995, Japan imports about 7,70,000 metric tons of tariff-free rice every year. According to some reports, the U.S. accounted for 45% of the total in the last financial year. This share could now increase. According to Mr. Trump, Japan will open several sectors to U.S. imports, including cars, trucks, and agricultural products. The Hindu has previously reported how agriculture remains a major impediment in the ongoing negotiations for a trade deal between India and the U.S. 'India is of course monitoring all the deals that are being struck with the U.S., but it's also important to remember that these are deals so far in words and have not been officially signed yet,' according to a source. Also Read | U.S. not rushing trade deals ahead of August deadline, will talk with China: U.S. Treasury Secretary 'But it is significant that agriculture entered the U.S. deal with Japan,' he added. 'It is important to examine the ring-fencing of rice imports that Japan has ensured.' Following Mr. Trump's announcement, Japanese Prime Minister Shigeru Ishiba was quoted by Reuters as telling reporters that 'import volumes (of rice) will remain within the minimum access framework and we retain the discretion over how much and what type to import from each country'. The framework for the trade deal with Indonesia reveals that that country would remove tariffs on about 99% of items industrial, food and agricultural items imported from the U.S. In addition, the framework also includes several upcoming acquisitions by Indonesia of products from the U.S. Also Read | India needs to be careful, clever while negotiating trade pact with US: Raghuram Rajan These include aircraft worth $3.2 billion, agriculture products, including soybeans, soybeans meal, wheat and cotton worth $4.5 billion and energy products, including liquefied petroleum gas, crude oil and gasoline, worth $15 billion. The U.S. will impose a 19% tariff on Indonesia, down from the 32% he had said would be imposed from August 1. The U.S.–Indonesia trade deal forces Jakarta to give up key domestic regulations that have long protected its industries, food safety and digital space. 'The U.S.–Indonesia trade deal is a clear example of how aggressive U.S. pressure can force countries to slash tariffs, commit to large purchases, and give up control over their own regulations,' Ajay Srivastava, former Director General of Foreign Trade and founder of Global Trade Research Initiative said. 'India must be careful not to fall into the same trap.'
AsiaOne
13 hours ago
- Business
- AsiaOne
Indonesia to cut tariffs, non-tariff barriers in US trade deal, Money News
WASHINGTON — Indonesia has agreed to eliminate tariffs on more than 99 per cent of US goods and scrap all non-tariff barriers facing American firms, while the US will drop threatened tariffs on Indonesian products to 19 per cent from 32 per cent, the two countries said on Tuesday (July 22). Trump hailed the deal, which he first announced on July 15, in a posting on his Truth Social media platform, calling it a "huge win for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers". Details of a framework for the accord were released in a joint statement by both countries, and a fact sheet issued by the White House. They said negotiators for both countries would finalize the actual agreement in coming weeks. "Today, the United States of America and the Republic of Indonesia agreed to a framework for negotiating an agreement on reciprocal trade to strengthen our bilateral economic relationship, which will provide both countries' exporters unprecedented access to each other's markets," the statement said. The Indonesia deal is among only a handful reached so far by the Trump administration ahead of an Aug 1 deadline when higher tariffs are due to kick in. The US tariff rate on Indonesia, Southeast Asia's largest economy, matches the 19 per cent announced for the Philippines earlier on Tuesday. Vietnam's tariff rate has been set at 20 per cent. Under the agreement, Indonesia will immediately drop its plans to levy tariffs on internet data flows and it agreed to support renewal of a longstanding World Trade Organisation moratorium on e-commerce duties, a senior Trump administration official told reporters on a conference call. Indonesia also will remove recently enacted pre-shipment inspections and verifications of US exports that have posed problems for US agricultural exports and contributed to a growing US farm trade deficit, the official said. The official, who was not authorised to speak publicly, said the agreement could help restore the surplus in agricultural goods that the United States once had with Indonesia, until it implemented the pre-shipment requirements. In a win for US automakers, the official said Indonesia has agreed to accept US Federal Motor Vehicle Safety Standards for vehicles exported from the United States to the growing country of 280 million people. Indonesia also has agreed to remove export restrictions on industrial commodities, including critical minerals, the joint statement said. The US official said it would also remove local content requirements for products using these commodities that were shipped to the United States. The joint statement said the US would reduce the reciprocal tariff rate to 19 per cent, and "may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate". No further details were provided. The two countries said they would negotiate rules of origin to ensure the benefits of the deal accrue mainly to the US and Indonesia, not third countries. They said Indonesia would work to address barriers for US goods, including through the removal of import restrictions and licensing requirements on US remanufactured goods or parts. Indonesia also agreed to join the Global Forum on Steel Excess Capacity and take actions to address global excess capacity in the steel sector. [[nid:720233]]
Sinar Daily
a day ago
- Business
- Sinar Daily
Malaysia stands firm on Palestine, warns of rising Mossad threat amid geopolitical tensions
KUALA LUMPUR - Malaysia's stance on the Gaza issue, as well as matters concerning Palestine and West Asian countries, including Iran, will remain unchanged despite the possibility of facing pressure or objections from the United States (US) during the ongoing tariff negotiations, which are expected to continue until August. Prime Minister Datuk Seri Anwar Ibrahim said Malaysia, as an independent and sovereign nation, has the right to express its views on the matter. "We are not yet at the final stage of negotiations as reported last week. There are still no clear indications, but there are several considerations during the negotiations,' he said. "The main issue involves electrical and electronics (E&E), semiconductors, and chips, as I mentioned in the Parliament. About 60 per cent of our production is exported to the US. However, the US also relies on Malaysia for chips and E&E, accounting for around 25 per cent of its production. "So, we hope and pray, insya-Allah, that this matter can be resolved amicably,' he said during the Ministers' Question Time in the Dewan Rakyat today. Anwar was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (MUDA-Muar), who asked whether Malaysia's firm stance in defending Palestinian rights would be taken into account by the United States, which is likely to impose additional tariffs, and whether Malaysia was prepared to compromise on the matter. "My question is, on Aug 1, Malaysia will face an additional tariff of 25 per cent, even though US President Donald Trump announced this on economic grounds only. However, if we look at what was imposed on Brazil, it is clear that it was not due to a surplus or deficit, but because of Trump's anger towards his friend who is about to be imprisoned," said Syed Saddiq. The Prime Minister said that although the latest tariff imposed by the US on Malaysia is 25 per cent - which is still lower compared to Vietnam, Cambodia or Thailand - Malaysia does not consider the US decision to be fair as it was made unilaterally and is not in line with the principles of the World Trade Organisation (WTO) and the international agreements that have been signed. "We have raised this issue, and Muar is right to mention that because of Brazil's strong stance - with Brazilian President Luiz Inacio Lula da Silva openly criticising the US over the genocide in Gaza and opposing unilateral measures to pressure developing countries, including those in BRICS - a 50 per cent tariff was imposed on Brazil. "We still have time until August and negotiations are ongoing, so I do not want to pre-empt the outcome. However, in my recent meetings with US Secretary of Defence Pete Hegseth in Singapore and US Secretary of State Mark Rubio, although tariffs were mentioned, they were not the main issue of discussion," Anwar said. Anwar said Malaysia has always respected diplomatic relations with all countries while firmly upholding universal humanitarian principles. "Regardless of the impact, threats or objections towards our stance on Palestine, Gaza or our good relations with Iran, this will not change our firm position as an independent and sovereign country in voicing our views," he said. Responding to the original question from Mohd Sany Hamzan (PH-Hulu Langat) on the government's short- and long-term plans to address geopolitical tensions in the Middle East, particularly in Palestine, Anwar said Malaysia had done what it could by firmly voicing its stance and views. He said Malaysia has consistently maintained a strong position on the Palestinian issue at international conferences, including joint platforms with the Arab League, the Organisation of Islamic Cooperation (OIC), the United Nations (UN) and other multilateral forums. "Malaysia has done its utmost to voice its views firmly... but Israel's tyranny and violence have not ceased. Now, it is not only about Gaza, but also involves attacks on Iran, Syria, Iraq and Lebanon," he said. At the same time, the Prime Minister welcomed suggestions and advice from Members of Parliament to further strengthen Malaysia's efforts in voicing opinions, providing humanitarian aid, and enhancing bilateral relations on the issue. Meanwhile, in response to a supplementary question from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) on the government's measures to safeguard Malaysia against the infiltration of Mossad agents, Anwar said the government, through the Home Ministry, had taken additional steps to enhance the country's security capabilities. "What is being highlighted about Malaysia is perhaps due to our strong voice on the Middle East issue, which may have made the country a target for drug smuggling, weapons trafficking and the infiltration of Mossad agents. "In the latest briefing by our intelligence agencies, there is genuine concern about national security, particularly since it has been proven that Mossad agents are present and have used, or colluded with, Malaysian spouses," he said. - BERNAMA
The Sun
a day ago
- Business
- The Sun
Malaysia maintains Gaza stance despite US pressure, says PM Anwar
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has reiterated Malaysia's firm stance on the Gaza conflict and broader Palestinian issues, stating that the country will not waver despite potential pressure from the United States (US) during ongoing trade negotiations. Anwar emphasized Malaysia's sovereignty, asserting that the nation reserves the right to voice its opinions independently. 'We are not yet at the final stage of negotiations as reported last week. There are still no clear indications, but there are several considerations during the negotiations,' he said during the Ministers' Question Time in the Dewan Rakyat. The discussions primarily revolve around electrical and electronics (E&E) products, semiconductors, and chips, which constitute a significant portion of Malaysia's exports to the US. 'About 60 per cent of our production is exported to the US. However, the US also relies on Malaysia for chips and E&E, accounting for around 25 per cent of its production,' Anwar explained. Expressing optimism for a peaceful resolution, he added, 'So, we hope and pray, insya-Allah, that this matter can be resolved amicably.' Anwar was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (MUDA-Muar), who asked whether Malaysia's firm stance in defending Palestinian rights would be taken into account by the United States, which is likely to impose additional tariffs, and whether Malaysia was prepared to compromise on the matter. 'My question is, on Aug 1, Malaysia will face an additional tariff of 25 per cent, even though US President Donald Trump announced this on economic grounds only. However, if we look at what was imposed on Brazil, it is clear that it was not due to a surplus or deficit, but because of Trump's anger towards his friend who is about to be imprisoned,' said Syed Saddiq. The Prime Minister said that although the latest tariff imposed by the US on Malaysia is 25 per cent - which is still lower compared to Vietnam, Cambodia or Thailand - Malaysia does not consider the US decision to be fair as it was made unilaterally and is not in line with the principles of the World Trade Organisation (WTO) and the international agreements that have been signed. 'We have raised this issue, and Muar is right to mention that because of Brazil's strong stance - with Brazilian President Luiz Inacio Lula da Silva openly criticising the US over the genocide in Gaza and opposing unilateral measures to pressure developing countries, including those in BRICS - a 50 per cent tariff was imposed on Brazil. 'We still have time until August and negotiations are ongoing, so I do not want to pre-empt the outcome. However, in my recent meetings with US Secretary of Defence Pete Hegseth in Singapore and US Secretary of State Mark Rubio, although tariffs were mentioned, they were not the main issue of discussion,' Anwar said. Anwar said Malaysia has always respected diplomatic relations with all countries while firmly upholding universal humanitarian principles. 'Regardless of the impact, threats or objections towards our stance on Palestine, Gaza or our good relations with Iran, this will not change our firm position as an independent and sovereign country in voicing our views,' he said. Responding to the original question from Mohd Sany Hamzan (PH-Hulu Langat) on the government's short- and long-term plans to address geopolitical tensions in the Middle East, particularly in Palestine, Anwar said Malaysia had done what it could by firmly voicing its stance and views. He said Malaysia has consistently maintained a strong position on the Palestinian issue at international conferences, including joint platforms with the Arab League, the Organisation of Islamic Cooperation (OIC), the United Nations (UN) and other multilateral forums. 'Malaysia has done its utmost to voice its views firmly... but Israel's tyranny and violence have not ceased. Now, it is not only about Gaza, but also involves attacks on Iran, Syria, Iraq and Lebanon,' he said. At the same time, the Prime Minister welcomed suggestions and advice from Members of Parliament to further strengthen Malaysia's efforts in voicing opinions, providing humanitarian aid, and enhancing bilateral relations on the issue. Meanwhile, in response to a supplementary question from Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) on the government's measures to safeguard Malaysia against the infiltration of Mossad agents, Anwar said the government, through the Home Ministry, had taken additional steps to enhance the country's security capabilities. 'What is being highlighted about Malaysia is perhaps due to our strong voice on the Middle East issue, which may have made the country a target for drug smuggling, weapons trafficking and the infiltration of Mossad agents. 'In the latest briefing by our intelligence agencies, there is genuine concern about national security, particularly since it has been proven that Mossad agents are present and have used, or colluded with, Malaysian spouses,' he said.
The Star
a day ago
- Business
- The Star
M'sia stands firm on Gaza, won't buckle to outside pressure, says PM
KUALA LUMPUR: Putrajaya will continue to speak out against atrocities and injustice happening in the Middle East and would not be swayed by any pressures from other countries, says Prime Minister Datuk Seri Anwar Ibrahim. He said that Malaysia will remain firm on the issue, even if it may lead to higher tariffs imposed by US President Donald Trump. 'Our stand, as a free and independent country, will remain firm despite any objections or intimidation,' he said during Prime Minister's Question Time in the Dewan Rakyat on Tuesday (July 22). Syed Saddiq Syed Abdul Rahman (Muda- Muar) had asked if Malaysia's firm position on the Middle East conflict was a factor for Trump's decision to impose higher reciprocal tariffs on Malaysian goods. Anwar said the negotiation process on the tariffs is ongoing. He added that Malaysia has voiced out its views on the tariffs through several meetings with US diplomats, including a recent meeting with US Secretary of State Marco Rubio. He said Malaysia's views on Palestine were touched on during the meetings, but were not the main topic of discussion. 'The US decision (on tariffs) is unfair, unilateral, and goes against the World Trade Organisation's principles and existing agreements, which we had mentioned," Anwar added. Malaysia was slapped with a 24% reciprocal tariff in April, and it was recently increased to 25% despite initial talks between representatives of both countries. Anwar also told Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) that Malaysia has been looking at various avenues to ensure that humanitarian assistance reaches the people of Gaza. 'Based on the latest briefing by the Foreign Ministry, we still have the funds and facilities to deliver the aid. 'I have requested cooperation from the Egyptian President (Abdel Fattah El-Sisi), but our efforts are still blocked by Israel on the Rafah border,' he said. Anwar added that humanitarian efforts were also being coordinated with Qatar and Jordan. '(We sought) Jordan's help to bring in assistance such as food and medicines to Gaza, but this was also blocked (by Israel),' he said.
