3 hours ago
3
Malaysia’s government has been forced to defend its new trade deal with the US after opposition politicians, analysts and civil society groups warned that the deal was “one-sided” and could compromise the country’s sovereignty.
Investment, trade and industry minister Tengku Zafrul Aziz has called the trade deal “the best possible outcome for Malaysia.”
“This is the geopolitical reality we face as a freely trading nation engaging with the world’s largest economic power, which is also our biggest trading partner,” Aziz said.
Among the critics of the deal is former Malaysian prime minister Mahathir Mohamad – a trade nationalist and the country’s longest-serving leader – who said provisions in the agreement amounted to “handing over” the country’s independence.
“We agree to buy their airplanes, gas and machines, obey their digital rules, that they have the first bite of the cherry of our rare minerals, open our market on their terms and follow their conditions on who we can do or not do business with,” Mahathir, a political rival of prime minister Anwar Ibrahim, said last week.
Signed during Donald Trump’s visit to Kuala Lumpur last week, the deal would see Malaysia agree to remove or cut tariffs on some US goods, while the United States pledged to maintain tariffs on Malaysian products at 19%, except for a list of items that will receive a zero percent reciprocal tariff rate.
The government hailed the agreement as a win for attracting higher investments and expanding trade with the US.
But public discourse has centred on an article of the agreement published by the White House, which states Malaysia is required to align itself with the US on matters of economic restrictions or sanctions against a third country.
Opposition politician Azmin Ali claimed that the clause would mean that if “Washington decides to block imports from China or Russia, Malaysia must do the same, even if it harms our economy.”
Azmin, a former international trade and industry minister, said it would force Malaysia to take sides in other people’s conflicts and destroy “the neutrality that has long been our strength.”
Politicians from across the political spectrum, including some members of parliament in Anwar Ibrahim’s ruling coalition, as well as analysts and civil society groups have also expressed concerns.
Elina Noor, Senior Fellow at the Asia Program of the Carnegie Endowment for International Peace, told the Guardian, she agreed with Mahathir that the agreement was extremely one-sided, but did not agree that it violates constitutional provisions.
“With this US deal, Malaysia will now have to work extra hard to ensure it isn’t ensnared in other countries’ restrictions” Noor said, adding that the country would also have to be “diligent about not sleepwalking into long-term, strategic alignment against its own interests.”
Malaysia’s Center to Combat Corruption and Cronyism (C4 Center) released a statement expressing concerns that the bilateral agreement also risks bypassing procurement laws and putting investments beyond oversight.
“It gives away our right to decide on things,” Pushpan Murugiah, C4 Center’s chief executive officer said.
“There are certain clauses that mandate that if we take actions that will affect US interest, we have to essentially ask permission first.”
The investment, trade and industry ministry was quick to create a microsite and release a 15-page Frequently Released Questions (FAQs) to address concerns. The government’s chief legal adviser also said Malaysia can terminate the agreement unilaterally anytime.
A special parliamentary committee is scheduled to review the bilateral agreement next week.
