AGC: M'sia can terminate trade agreement with US at any time

Malaysia has the right to terminate its reciprocal trade agreement with the US at any time through written notice without requiring Washington’s consent, said the Attorney-General's Chambers (AGC).

In a statement, the AGC said this is provided for under Article 7.5 of the deal, 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 the agreement 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," the AGC stated.

The deal 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.

Tariff talks

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

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

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

Other relevant ministries and agencies were also involved in the negotiations, and policy decisions regarding the agreement were made by the cabinet after considering economic, political, and legal aspects.

- Bernama

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