MALAYSIA has the right to terminate its Agreement on Reciprocal Trade (ART) with the United States at any time through written notice, without requiring Washington’s consent, the Attorney-General’s Chambers (AGC) confirmed.
In a statement issued on Monday night, the AGC said this right is clearly outlined in Article 7.5 of the ART, which also emphasises that all provisions under the agreement are designed to defend and preserve Malaysia’s sovereignty and national interests.
“The implementation of obligations and commitments under this agreement by Malaysia is subject to applicable Malaysian domestic laws and procedures,” the statement read.
The AGC also clarified that the agreement will only come into force 60 days after both Malaysia and the United States exchange written notifications confirming the completion of their respective domestic legal processes.
It added that the ART requires both parties to engage in good-faith consultations to resolve any issues related to implementation before taking further action against one another.
Furthermore, Article 7.1 reaffirms that both Malaysia and the United States, as members of the World Trade Organisation (WTO), continue to recognise the rights, obligations and protections established under the WTO framework on international trade.
Malaysia and the United States signed the ART on Sunday, 26 October, during the 47th ASEAN Summit and Related Summits in Kuala Lumpur.
The agreement stems from a US proposal to revise Malaysia’s tariff rate from 25 per cent to 19 per cent, under Executive Order 14257 issued by President Donald Trump on 2 April this year.
Negotiations on Malaysia’s behalf were led by the Ministry of Investment, Trade and Industry (MITI), while the Office of the United States Trade Representative represented Washington.
MITI said that various ministries and agencies were involved in the negotiation process, and that policy decisions concerning the ART were approved by the Cabinet after taking into account economic, political and legal considerations. - November 4, 2025
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