KUALA LUMPUR, Feb 20 (Bernama) -- Malaysia may need to revisit the Agreement on Reciprocal Trade (ART) with the United States which was signed last October, including on legal grounds following the latest US Supreme Court decision on Friday.
The highest court has shot down the US tariffs imposed globally by President Donald Trump, which could result in many countries revisiting the deal.
Revisiting the deal may include seeking legal advice especially on how to manoeuvre should the outcome impact Malaysia adversely.
Since the signing of the ART on Oct 26 last year, Malaysia has repeatedly reiterated that Malaysia's sovereignty, policy autonomy and national interests remain fully protected under the Malaysia-United States ART.
Both countries signed the agreement after reaching consensus since negotiation started in April last year, on the sidelines of the 47th ASEAN Summit and related meeting.
With the signing, the agreement aims to stabilise trade relations between Malaysia and the US, especially after the US introduced higher tariffs on countries with large trade surpluses.
ART also protects Malaysian exports and jobs by securing continued access to the US market and promote fair treatment, ensuring that both sides apply tariffs, market access and trade rules in a reciprocal (balanced) way.
Under the agreement, 1,711 Malaysian export product lines would enjoy tariff exemption when entering the US market, improving price competitiveness and strengthening Malaysia’s position as an important player in global supply chains.
Earlier, Kyodo reported the US Supreme Court stated that the president's use of emergency powers to hit nearly all of America's trading partners with so-called reciprocal tariffs is unconstitutional.
Upholding the lower court findings, the highest court also ruled that Trump overstepped his presidential powers when he used the 1977 International Emergency Economic Powers Act to impose the sweeping global tariffs as well as the fentanyl-related duties he applied to goods from China, Canada and Mexico.
The decision by the highest court was delivered in a 170-page ruling.
-- BERNAMA
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