Attorney-General’s Chambers confirms Malaysia can unilaterally terminate US trade deal with written notice under Article 7.5 of ART agreement.
KUALA LUMPUR: Malaysia retains the right to terminate its Agreement on Reciprocal Trade with the United States at any time through written notice without requiring American consent.
The Attorney-General’s Chambers clarified this unilateral termination right exists under Article 7.5 of the ART agreement which safeguards Malaysian sovereignty and national interests.
This agreement will only take effect 60 days after both nations exchange written notifications confirming completion of their respective domestic legal procedures.
Malaysia’s implementation of all obligations and commitments under this trade agreement remains subject to applicable Malaysian domestic laws and procedures.
The ART also establishes provisions for good-faith consultations between Malaysia and the United States regarding implementation issues before either party can take action against the other.
Both nations as World Trade Organisation members will continue recognising rights obligations and protections established under WTO agreements for international trade according to Article 7.1.
Malaysia and the United States signed the Agreement on Reciprocal Trade on October 26 during the 47th ASEAN Summit held in Kuala Lumpur.
This agreement resulted from a US proposal to renegotiate tariffs on Malaysian goods reducing them from 25% to 19% under President Donald Trump’s Executive Order 14257 issued on April 2 2025.
The Ministry of Investment Trade and Industry led negotiations for Malaysia while the Office of the United States Trade Representative represented American interests.
MITI involved relevant ministries and agencies throughout negotiations with all policy decisions regarding ART made by the Cabinet after considering economic political and legal aspects. – Bernama
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