Malaysia will initiate a comprehensive assessment of its newly signed trade pact with the United States before moving forward with ratification, as officials seek to address economic concerns raised by stakeholders, according to the report by Bloomberg.
According to Malaysia’s high-level minister, the forthcoming review, expected to take between six and twelve months, will specifically examine the deal’s implications for Malaysia’s export performance and trade balance.
The announcement comes shortly after U.S. President Donald Trump declared plans to sharply increase tariffs on South Korean exports, criticizing Seoul’s handling of their bilateral trade arrangements.
Prime Minister Datuk Seri Anwar Ibrahim clarified that the trade pact, though signed nearly three months ago, has not yet been implemented. Anwar emphasized that Malaysia is engaged in ongoing talks with U.S. authorities, seeking further clarification and modification of specific provisions in the agreement.
Signed on October 26 last year during the 47th ASEAN Summit in Kuala Lumpur, the ART emerged from discussions held during Trump’s official visit. The treaty is intended to position Malaysia for lower tariffs on certain exports to the U.S. – reducing some rates from 25% to 19% – and includes steps to remove non-tariff trade barriers hindering American exporters.
However, public scrutiny has grown since the signing. Critics, including former prime minister Tun Dr Mahathir Mohamad, have voiced apprehension that the agreement might oblige Malaysia to follow U.S. regulations concerning trade and investment, potentially limiting national policy autonomy.
