The United States and Malaysia have reached a new Agreement on Reciprocal Trade aimed at strengthening economic ties and improving market access for exporters from both countries. The agreement builds on previous cooperation, including the 2004 United States-Malaysia Trade Investment Framework Agreement.
According to a joint statement, "The Government of the United States of America (“the United States”) and the Government of Malaysia have reached agreement on an Agreement on Reciprocal Trade (“the Agreement”) to strengthen our bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets. The Agreement will build upon our longstanding economic relationship, including the United States-Malaysia Trade Investment Framework Agreement signed in 2004."
Key provisions include consideration by the United States of national security impacts related to trade under section 232 of the Trade Expansion Act of 1962. The statement notes, "The United States may positively consider the effect that the Agreement has on national security, including taking the Agreement into consideration when taking trade action under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862)."
Further discussions are underway between the U.S. Department of Treasury and Bank Negara Malaysia to reach mutual understanding on currency policy. The statement also says, "Additionally, to support a fair economic relationship between Malaysia and the United States, the U.S. Department of the Treasury and Bank Negara Malaysia are in discussion to finalize their mutual understanding on currency policy."
Both governments will now begin domestic processes required before putting the agreement into force.
