The investment, trade and industry ministry is conducting a cost-benefit analysis of the Malaysia-US Agreement on Reciprocal Trade (ART) inked with the US last year, its minister Johari Ghani told the Dewan Rakyat today.
Johari said the Malaysia External Trade Development Corporation and Malaysian Investment Development Authority were helping the ministry with the analysis.
“Specific focus will be placed on (the deal’s) impact on the country’s exports to the US, valued at RM233.1 billion, with a trade surplus of RM98.7 billion,” he said.
Johari was responding to Radzi Jidin (PN-Putrajaya), who had asked whether Putrajaya would conduct a detailed cost-benefit analysis of the trade deal before ratifying it, and which agencies would participate in the analysis.
Radzi also asked whether the government could renegotiate clauses in the deal, and what consequences scrapping the trade deal could have.
Johari said a detailed analysis would take six to 12 months, and that Malaysia had yet to receive a formal notice from the US on the timeline to finalise the ratification of the trade deal.
“Therefore, the government is reviewing ART to ensure that the country’s economic interests are safeguarded and reduce risks to the country’s trade (activities),” he said.
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