KUALA LUMPUR, July 25 — Malaysia will have two years to introduce measures prohibiting imports of goods produced using forced labour under its trade agreement with the US, Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said today.

According to Berita Harian, Johari said the requirement was among the provisions contained in the Malaysia-US Agreement on Reciprocal Trade (ART), which has been signed but has yet to be ratified.

“The two years are not immediate because the agreement has already been signed. Once we ratify the relevant elements, it means they are giving us two years to fix the laws that we do not have,” he was quoted as saying.

He said the Human Resources Ministry had been informed of the changes required, including measures aimed at preventing Malaysian exports from incorporating imported materials or components produced through forced labour in third countries.

Under the ART, the two-year period begins when the agreement enters into force, which occurs 60 days after both countries exchange written notifications confirming completion of their respective legal procedures, unless they agree on another date.

Johari reportedly said Malaysia already had laws allowing action to be taken against employers who hire undocumented foreign workers, but lacked a specific mechanism to stop goods produced using forced labour overseas from entering the country and subsequently being used in Malaysian-made products.

He was speaking after opening the National Chamber of Commerce and Industry of Malaysia’s 50th annual general meeting here.

Johari also addressed the US’ decision to impose a 10 per cent tariff on Malaysian imports following its investigation into countries that did not impose and effectively enforce restrictions on imports of goods produced using forced labour.

He said Malaysia received the lower 10 per cent rate, compared with the 12.5 per cent imposed on some other economies, after committing under the ART to introduce such restrictions.

“They found that some of the components involved forced labour. That affected us because we do not have the law and we do not have the mechanism. So while we put this law in place, they imposed the 10 per cent tariff on us,” he was quoted as saying.