Malaysia Can Terminate Trade Agreement With US At Any Time - AGC

KUALA LUMPUR, Nov 3 (Bernama) -- Malaysia has the right to terminate its Agreement on Reciprocal Trade (ART) with the United States (US) at any time through written notice without requiring the consent of the US, said the Attorney-General's Chambers (AGC).

In a statement, the AGC said that this is provided for under Article 7.5 of the ART, which also emphasises that all protections under the agreement are intended to defend and preserve Malaysia's sovereignty and protect the country's interests at all times.

The statement clarifies that ART will only come into effect 60 days after both parties exchange written notifications confirming that their respective domestic legal procedures have been completed.

"The implementation of obligations and commitments under this agreement by Malaysia is subject to applicable Malaysian domestic laws and procedures," according to the AGC.

ART also provides for good-faith consultations between Malaysia and the US regarding implementation issues before either party can take action against the other.

However, based on Article 7.1, Malaysia and the US, as member countries of the World Trade Organisation (WTO), will continue to recognise the rights, obligations, and protections established under the WTO agreement for international trade.

Malaysia and the US signed the ART on Oct 26 during the 47th ASEAN Summit in Kuala Lumpur.

The agreement is a US proposal to renegotiate tariffs on Malaysia from 25 per cent to 19 per cent, under Executive Order 14257 issued by US President Donald Trump on April 2, 2025.

The negotiations were led by the Ministry of Investment, Trade and Industry (MITI) on behalf of Malaysia, while the US was represented by the Office of the United States Trade Representative.

MITI also involved relevant ministries and agencies in the negotiations, and policy decisions regarding ART were made by the Cabinet after considering economic, political and legal aspects.

-- BERNAMA