KUALA LUMPUR: The Federation of Malaysian Manufacturing (FMM) has urged the United States to adopt a balanced approach to its proposed Section 301 tariff action on imports linked to forced labour, cautioning that blanket duties could penalise compliant Malaysian manufacturers and disrupt established supply chains.
In a submission to the Office of the United States Trade Representative (USTR), FMM president Jacob Lee Chor Kok said it fully supports efforts to eliminate forced labour from global supply chains but stressed that any additional tariffs should not unfairly affect manufacturers that already comply with stringent labour standards.
“Many Malaysian manufacturers exporting to the United States already operate under strict customer-driven labour compliance requirements, including audits, supplier codes of conduct and traceability obligations,” he said in a statement yesterday.
The federation also warned the proposed additional duty could itself burden US commerce by raising costs for US importers, manufacturers and consumers, particularly where Malaysian suppliers form part of long-standing and specialised supply chains.
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