Malaysia has explained excess capacity, forced labour claims to US, says Johari

Malaysia has explained excess capacity, forced labour claims to US, says Johari

Investment, trade and industry minister Johari Ghani says Malaysia has complied with regulations.

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Investment, trade and industry minister Johari Ghani said Malaysia has informed the US that it has no issues of structural excess capacity or forced labour.
PETALING JAYA:
Malaysia has submitted an explanation to the US in response to allegations of structural excess capacity and production as well as the use of forced labour, says investment, trade and industry minister Johari Ghani.

He said Malaysia had complied with regulations.

“We have informed them that we don’t have any such issues,” Bernama reported him as saying after a forum today, organised by the Concorde Club in Kuala Lumpur on Malaysia’s response to global conflicts and tariffs.

In March, US trade representative Jamieson Greer announced an investigation into various economies under Section 301(b) of the Trade Act 1974, which he said would determine whether their policies and practices were unreasonable or discriminatory and burdened or restricted US commerce.

“The US will no longer sacrifice its industrial base to other countries that may be exporting their problems with excess capacity and production to us,” he said.

Besides Malaysia, the economies subject to these investigations were China, Indonesia, Cambodia, Thailand, Korea, Vietnam, and Taiwan.

Johari previously said even if Malaysia had excess production capacity, it did not mean it was dumping products in the US.

He said a comparison of domestic and export prices would clarify the matter, adding that Malaysia could not be accused of dumping if the prices matched.

Johari said dumping generally occurs when a product is sold more cheaply in export markets than in its country of origin, creating the perception that businesses overseas are being undercut.

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