ART DEAL DOES NOT AFFECT MALAYSIAN SOVEREIGNTY -- GOBIND

KUALA LUMPUR, Nov 24 (Bernama) -- The Agreement on Reciprocal Trade (ART) between Malaysia and the United States does not compromise national sovereignty and instead strengthens cooperation in digital trade, Digital Minister Gobind Singh Deo said.

Speaking in Parliament while concluding debate on his ministry’s 2026 Budget allocation, he said Malaysia retains full autonomy in decision-making and is not bound by Washington.

“I support the Prime Minister Datuk Seri Anwar Ibrahim’s position that this agreement is non-binding and our sovereignty remains intact. It deals only with specific aspects of trade.

“What is stated there is clear, particularly in the digital provisions raised under Clause 3.1,” he said.

On Clause 3.1 relating to the Digital Services Tax, Gobind said the agreement merely states that Malaysia shall not impose discriminatory taxes on United States companies.

He urged lawmakers to understand the provisions under Clauses 3.1, 3.2 and 3.3 to avoid misinterpretation.

Gobind said Clause 3.3, which includes the phrase “Malaysia shall consult”, does not mean Malaysia must accept or comply with any United States decision.

“The word ‘shall’ is often assumed to be mandatory. But here, it is simply ‘shall consult’. It does not mean we agree.

“It only means we will consult, and that is an important distinction. ‘Shall consult the United States before entering into a new digital trade agreement with another country that jeopardises essential US interests’,” he said.

Clause 3.2 covers the facilitation of digital trade, including refraining from measures that could be deemed discriminatory.

Gobind stressed that the agreement does not bind Malaysia nor undermine the government’s ability to make independent decisions.

-- BERNAMA