The US ambassador to Malaysia has dismissed claims that the reciprocal trade agreement between Washington and Putrajaya compromises Malaysia’s sovereignty, saying it instead marks a deeper and more balanced partnership between the two nations.
“This is not a surrender of sovereignty. It is a recognition that we’re moving into a new phase in the relationship,” Edgard D Kagan told reporters here.
Kagan also described as “normal” some of the provisions that critics took issue with, adding that if it were to impact the interest of one party, both governments would be expected to raise the issue through proper diplomatic channels.
“This is what you do between close partners.”
Earlier today, Perikatan Nasional secretary-general Azmin Ali claimed that the Malaysia-US Reciprocal Trade Agreement undermined the country’s economic sovereignty.
The former international trade and industry minister said the most damaging clauses of the agreement requires Malaysia to copy any US trade restrictions or sanctions against other countries.
Kagan however said the deal reflected a sovereign decision by Malaysia to strengthen its economic ties with the US.
“Malaysia made a sovereign decision to enter the agreement. The deal protects Malaysia’s sovereignty by making clear that Malaysia is choosing a closer relationship with the US.”
Malaysia and the US signed a wide-ranging reciprocal trade deal yesterday aimed at strengthening bilateral economic ties, expanding market access and bolstering supply chain resilience.
Under the agreement, Malaysia has committed to providing significant preferential market access for US industrial goods exports, including chemicals, machinery and electrical equipment, metals and passenger vehicles, as well as for agricultural exports such as dairy products, poultry and rice.
The US, meanwhile, will maintain a 19% reciprocal tariff on Malaysian goods, with certain products receiving a 0% tariff rate under a list of aligned partners.
