Malaysia

Malaysia-US Reciprocal Trade Agreement pending enforcement as government reviews key clauses - Johari

The government emphasises that ART with the U.S. will only come into force once both countries exchange formal written notices confirming the completion of domestic ratification processes

Updated 6 months ago · Published on 05 Feb 2026 10:55AM

Malaysia-US Reciprocal Trade Agreement pending enforcement as government reviews key clauses - Johari
Minister assures that a comprehensive review of potentially sensitive clauses is underway to safeguard national policy autonomy - February 5, 2026

MALAYSIA’S Reciprocal Trade Agreement (ART) with the United States will not be enforced until both nations formally exchange written notices confirming the completion of their respective ratification processes, the Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani, told Parliament.

“The exchange of written notices serves to confirm that all internal ratification procedures have been completed and that both countries are ready to enforce the ART,” Johari explained in a written reply published on the Parliament website.

His remarks came in response to a question from Tan Sri Muhyiddin Yassin regarding concerns that the ART may include provisions limiting Malaysia’s freedom to implement trade, investment, and national development policies. Muhyiddin had also asked about the government’s position on renegotiating clauses perceived as unfair.

Johari said the government is undertaking a thorough review of all provisions under the ART to ensure that Malaysia’s commitments are consistent with constitutional provisions, domestic legislation, and obligations under existing free trade agreements and international forums.

“It is subject to matters involving the Federal Constitution, national development policies, domestic laws and regulations, as well as Malaysia’s commitments in various international forums, including free trade agreements,” he said.

The minister reassured that while the ART has been signed, it has not yet come into force and is currently under detailed scrutiny.

He added that the government remains committed to protecting national interests and ensuring that the implementation of the agreement does not compromise Malaysia’s existing policy direction.

“The government wishes to emphasise that the ART agreement that has been signed has not yet been enforced and is now being reviewed thoroughly,” he said.

This statement reflects Malaysia’s cautious approach to international trade agreements, signalling a balance between fulfilling international commitments and safeguarding domestic policy flexibility. - February 5, 2026

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