JakartaGlobe/MalaysiaNow-Oct 28
The newly signed trade agreement between Malaysia and the United States has drawn strong backlash, with critics accusing Kuala Lumpur of “surrendering its economic sovereignty,” according to local media reports.
One of the most contentious provisions reportedly requires Malaysia to align with US trade sanctions or restrictions imposed on other countries — a clause that critics say undermines Malaysia’s long-standing neutrality. Former Trade and Industry Minister Mohamed Azmin Ali warned that if the US were to restrict imports from countries such as China or Russia, Malaysia would be compelled to follow suit, even at the expense of its own economy. “This clause forces Malaysia to take sides in other people’s conflicts and destroys the neutrality that has long been our strength,” Azmin was quoted as saying by the Scoop news website on Monday. He added that the clause could discourage investors who value Malaysia’s reputation as a neutral and stable partner. Azmin argued that the deal effectively places Malaysia in a position where it cedes control over major economic decisions, while the United States retains flexibility to act in its own interests. “What is being described as a ‘reciprocal partnership’ is, in truth, the loss of our economic sovereignty and policy space,” he said. Veteran politician Teng Chang Khim of the Democratic Action Party called on the government to clarify the terms of the deal, particularly those that appear to heavily favor the United States. Among the disputed provisions is one that requires Malaysia to consult Washington before entering into any new digital trade agreement with another country “that jeopardizes essential US interests.” Another clause reportedly allows the US to reimpose a 25 percent tariff, first announced in April, if Malaysia strikes a bilateral trade deal with any nation considered to “jeopardize US interests.” Read more at: https://jakartaglobe.id/business/trade-deal-with-washington-sparks-outcry-in-malaysia-over-sovereignty-concerns
