Do NTBs Hinder Trade Talks?

 

Minister of Investment, Trade and Industry said non-tariff barriers (NTBs) are a key issue in talks with the US and refuted claims that trade talks between the two countries had collapsed. The higher tariff of 25% has been slapped on Malaysian goods effective from 1 August.

Negotiations focus on three main areas: industrial products, agricultural products, and non-tariff barriers. Progress has been made on industrial and agricultural products, with Malaysia meeting nearly all of US’s requests. However, non-tariff barriers remain a challenge. 

Some key sticking points involve “red lines” tied to Malaysia’s national interests, like halal certification, which affects US beef and poultry exports. Other non-tariff barriers include digital trade and government procurement. 

The ongoing negotiation with the US will mainly address unresolved issues, as well as other matters on industrial and agricultural products, non-tariff barriers, labour and environmental standards, and economic security. 

 

Sector-specific negotiations include semiconductors, electrical and electronics, plastics, aluminium, medical devices, automotive, poultry, dairy and alcohol — most of which are Malaysia’s major export items to the US. 

In April, along with Trump’s tariff move, the US Trade Representative released a 2025 report listing trade barriers faced by US exporters. These include tariffs and non-tariff issues on alcohol, poultry, beef, government buying preferences, intellectual property, internet rules, and local equity rules (Bumiputera requirements). 

The problem with the US trade talks is credibility. What assurance is there that the US will honour an agreement? An example is the USA-Mexico-Canada Agreement (“USMCA”) on trade between these countries, which was effectively abandoned by Trump. It was the same on the nuclear arms deal with Iran or the Climate Change Agreement which were all abandoned by the US. If you are dealing with an unstable leader, be prepared for surprises! 

Reference:

Non-tariff barriers hinder US-Malaysia trade talks, Izzul Ikram, Luqman Amin & Maryam Kamal, theedgemalaysia.com, 10 Jul 2025