Anwar, Trump sign trade agreement to expand market access

The agreement was signed by Prime Minister Datuk Seri Anwar Ibrahim and U.S. President Donald Trump during a bilateral meeting on the sidelines of the 47th ASEAN Summit.

In a joint statement issued by the White House, both governments stated that the agreement “will provide exporters from both countries with unprecedented access to each other’s markets” and “will strengthen the long-term economic relationship between Malaysia and the United States,”

This includes the 2004 Trade and Investment Framework Agreement.

Under the agreement, Malaysia agreed to “provide significantly preferential market access to U.S. exports of industrial goods, including chemicals, machinery and electrical equipment, metals, and passenger vehicles,” in addition to agricultural exports such as dairy, poultry, and rice.

Meanwhile, the United States will maintain a reciprocal tariff rate of 19% on Malaysian goods, with certain products receiving a 0% tariff rate under a harmonised trade partner list.

The statement also noted that Malaysia will “refrain from imposing restrictions or quotas on the export of critical minerals or rare earth elements to the United States” and will cooperate with American companies “to provide certainty to the business sector in increasing production capacity.”

Meanwhile, in the field of digital trade, Malaysia agreed “not to impose discriminatory digital service taxes on U.S. companies” and to ensure “trusted cross-border data transfers with appropriate protections.”

Both countries also pledged to “adopt and maintain high levels of environmental protection,” strengthen labour rights enforcement, and enhance cooperation in investment security, export control, and anti-counterfeiting efforts.

The statement emphasised that Malaysia and the United States “are committed to strengthening cooperation in the areas of economic and national security as well as enhancing supply chain resilience and innovation.”

In addition, Bank Negara Malaysia and the U.S. Department of the Treasury are “currently in discussions to finalise a mutual understanding on currency policy.”