Malaysia-US Trade Agreement Defends National Interest, Sovereignty --Tengku Zafrul

KUALA LUMPUR, 29 Oct (Bernama) – Malaysia remains committed to a whole-of-government approach, consistently ensuring that the country's interests and sovereignty are protected when finalising the Agreement on Reciprocal Trade (ART) with the United States (US).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the negotiation team was resolute in matters concerning so-called “red-line” issues, particularly bumiputera rights, government procurement policies, and demands for full equity liberalisation in strategic national sectors such as energy and telecommunications.

He said claims by certain parties that the agreement amounts to “selling the country” are inaccurate.

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“There is no guarantee that we would receive lower tariffs if we had given in on all the red-line issues. That is the reality. But we had remained steadfast, defending the nation’s interests. We had not budged an inch upholding these red lines.

“This was a matter of national dignity and sovereignty. The government would never compromise on our sovereignty,” he said at a ministerial briefing on safeguarding and strengthening Malaysia’s trade and investment competitiveness in navigating global geoeconomic challenges through the Malaysia-US ART in the Dewan Rakyat today.

Furthermore, based on US-granted concessions against initial demands, Tengku Zafrul said the agreement is viewed as mutually beneficial, including to Malaysian businesses and exporters.

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“Various local industrial associations supported it. Many told MITI (Investment, Trade and Industry Ministry) directly that if the negotiations failed, they would lose not only profits but also have to cease operations and lay off Malaysian workers.

“Malaysia’s approach in the negotiations was based on principles of openness and long-term national interest, anchored on the protection and sustainability of companies, including SMEs, and Malaysians involved in the US market,” he said.

The negotiations did not adhere to an absolute agreement to all US-proposed conditions. Instead, the ART gave space to Malaysia to ensure discussions and negotiations remain open; they allowed issues to be resolved without compromising national interest and sovereignty.

“This ART is not a blank cheque for the US; it is a ‘perimeter fencing’ we have built. Subsequent actions must go through (a process of) negotiation, not unilateral threats,” he said.

All outcomes from the process must be referred to the relevant ministries for feedback, discussed and decided by the Cabinet.

The process was highly complex and challenging, given that Malaysia was simultaneously subjected to tariffs and time pressures, he said.

“This unilateral reciprocal tariff agreement is unprecedented. We are not negotiating a standard FTA (free trade agreement), which takes years, the fastest about 18 months.

“We are negotiating while Malaysia is under tariffs. The time pressure is not set by Putrajaya but from Washington. This is why this negotiation is one of the fastest and most complex in Malaysia’s history of trade agreement talks,” he said.

The world is observing Malaysia's response under various pressures, even as the government seeks solutions that protect national interests and the people’s well-being.

“Let the world see that Malaysia, under the MADANI Government, does not cower under the influence of any power, but is a respected and dignified nation capable of negotiating confidently, safeguarding national sovereignty, defending its rights, and protecting the interests of its people,” he said.

Tengku Zafrul also acknowledged the civil servants who worked tirelessly and remained committed to holding Malaysia’s interests and dignity in the negotiations.

— BERNAMA