Malaysia Refuses to Export Rare Earths to U.S
Clarifying Malaysia's responsibilities under the Agreement on Reciprocal Trade (ART) with the United States on Thursday, Arthur informed parliament that the pact contains no exclusive commitments, supply obligations, or market preferences that would compel Malaysia to channel REEs toward any specific nation.
"The Malaysian government also wishes to stress that REEs have never been offered as a concession or quid pro quo in any trade or tariff negotiations with the United States," he said.
He elaborated that Malaysia continues enforcing a prohibition on raw REE exports to prevent exploitation of the strategic asset without value enhancement and to stimulate advancement across the complete domestic industry spectrum, encompassing processing, research and development, and local product manufacturing.
Malaysia upholds a raw REE export ban designed to accelerate its domestic refining sector and guarantee value creation, with a designated moratorium spanning 2025-2027. This directive, initiated in 2024, mandates local processing instead of shipping unprocessed materials abroad.
"This policy was formulated with due consideration for the country's long-term interests, the division of jurisdiction between the federal government and state governments, and the need to ensure that the development of the REE industry is carried out in a sustainable and responsible manner," he said.
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