KUALA LUMPUR: United States Ambassador to Malaysia Edgard D. Kagan has denied opposition claims that the new reciprocal trade agreement between both countries disproportionately favours Washington.
Kagan stated that the deal signed during the 47th ASEAN Summit and Related Summits on Sunday was not lopsided but instead resolved a trade imbalance between the two nations.
He emphasised that the agreement would instil confidence among investors to come and invest in Malaysia rather than dampening enthusiasm.
The ambassador added that the trade deal would increase Malaysia’s access to the US market while boosting investment inflows.
Kagan pointed out that exports to the US have increased this year despite the tariffs initially set at 25% in July.
He noted that tariffs were negotiated down to the current 19% the following month despite the initial higher rate.
“Investment is coming into Malaysia because of the desire to be part of well-oiled, well-integrated Western supply chains, where Malaysia plays a very, very strong role,” Kagan said.
He added that the trade agreement would help turbocharge Malaysia’s role in these supply chains.
Under the trade deal sealed yesterday, tariffs on Malaysia remain at 19%, although certain items are exempt.
Exempt items include palm oil and semiconductors according to the agreement terms.
The US is Malaysia’s biggest export destination but ranks as Malaysia’s second biggest trading partner after China. – Bernama
