MITI is evaluating the US-Malaysia Reciprocal Trade Agreement to ensure it aligns with national sovereignty and boosts exports, which are projected to rise 17.2%.
KUALA LUMPUR: The Investment, Trade and Industry Ministry is conducting a detailed assessment of the Agreement on Reciprocal Trade with the United States.
The review aims to safeguard trade continuity and ensure the pact’s implementation aligns with its original objectives.
MITI stated the assessment examines market access outcomes from tariff reductions and provisions affecting national sovereignty.
It also covers impacts on Malaysia’s trade policy, industrial development, and regulatory frameworks.
The ministry confirmed this evaluation must be consistent with Malaysia’s existing and future international commitments.
This process responds to a parliamentary question from Datuk Seri Dr Wee Ka Siong regarding the ART’s economic impact.
The ongoing study will identify provisions needing improvement and necessary safeguards.
MITI stated these safeguards must align with Malaysia’s neutral, non-aligned policy and UN Charter commitments.
They must also be consistent with WTO rules and Malaysia’s existing free trade agreements.
“The ministry will submit the findings for discussion and consideration by the Cabinet,” MITI said.
The Cabinet will consider national economic security, diplomatic factors, and legal implications.
Malaysia’s international obligations will also be a key part of the final decision.
Enforcement of the ART will occur 60 days after both nations exchange instruments of ratification.
MITI provided export projections, showing significant growth in trade with the US.
Malaysian product exports to the US are forecast to rise 17.2% to RM233.1 billion in 2025.
This compares to an estimated RM198.6 billion in 2024 and RM161.3 billion in 2023.
