Intensive efforts continue in Malaysia to seek clarification or amendment of new agricultural import regulations, which threaten to impose costly new burdens on a wide range of commodities from several exporting countries. The U.S. Grains Council and the U.S. Soybean Export Council are working closely with USDA’s Foreign Agricultural Service Malaysia office and APHIS to reduce or eliminate the negative impact of these new regulations on U.S. export cargos. Local stakeholders in the Malaysian feed, trade and livestock sectors are also expressing their concerns to the Malaysian government.

While Malaysia has sanitary and phytosanitary (SPS) concerns with imports from some countries, Malaysian officials acknowledge that the United States is considered a low-risk origin for agricultural products. Nonetheless, a number of U.S. commodities such as corn meal, soybeans and soybean meal are still subject to these regulations, which are scheduled to take effect on July 1. It is unclear whether corn meal is intended to include corn gluten meal and/or distiller’s dried grains with solubles. The Council is pressing Malaysian authorities for a clarification of this issue. At this time, U.S. corn is not listed.

“The potential impacts are significant,” said Adel Yusupov, USGC regional director of Southeast Asia. “The new import requirements, for example, would require identity preserved, fumigation at export loading and other SPS requirements for U.S. corn meal. These raise serious concerns for both shippers and APHIS, which is concerned the proposed SPS requirements are well out of line with international standards and, therefore, U.S. practices.”

APHIS is expected to press this issue on a government-to-government basis with its counterparts in Malaysia, in addition to its ongoing collaboration with the Council, shippers and other concerned private stakeholders.

Malaysia is a net importer of feed grains and oilseeds, sourcing from India, Argentina, Brazil and Ukraine as well as the United States. All countries of origin are subject to new import regulations, so the risk of significant cost impacts is real. The Council will continue to work with the Malaysian and U.S. governments, as well as purchasers and end-users in Malaysia, to mitigate the burden of unnecessary new regulations on U.S. exports.