Malaysia Reserves Right to Terminate Trade Agreement With US at Any Time  Attorney-General’s Chambers

KUALA LUMPUR, Nov 3:  Malaysia has full authority to terminate its Agreement on Reciprocal Trade (ART) with the United States (US) at any time through a written notice, without requiring consent from Washington, the Attorney-General’s Chambers (AGC) confirmed today.

In a statement, the AGC said the provision is clearly outlined under Article 7.5 of the ART, which underscores that all protections within the agreement are intended to safeguard Malaysia’s sovereignty and national interests.

The AGC clarified that the ART will only take effect 60 days after both countries have completed their respective domestic legal procedures, ensuring compliance with national laws.

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

The agreement also includes a consultation mechanism, requiring both nations to engage in good-faith discussions on implementation issues before either side can take any form of retaliatory action.

Additionally, under Article 7.1, both Malaysia and the US, as members of the World Trade Organization (WTO), reaffirm their recognition of the rights, obligations, and protections established under WTO rules governing international trade.

Malaysia and the United States officially signed the ART on October 26 during the 47th ASEAN Summit in Kuala Lumpur.

The agreement, proposed by the US, seeks to renegotiate tariffs on Malaysian exports, reducing them from 25% to 19%, following Executive Order 14257 issued by US President Donald Trump on April 2, 2025.

Malaysia’s negotiation team was led by the Ministry of Investment, Trade and Industry (MITI), while the Office of the United States Trade Representative (USTR) represented the US.

MITI noted that multiple ministries and agencies were involved in the negotiation process and that the Cabinet’s final decision to proceed with the ART took into account economic, political, and legal considerations to ensure Malaysia’s long-term strategic and trade interests were fully protected.