Malaysia-US Trade Agreement to Take Effect Only After Ratification Notices Are Exchanged, Says MITI
KUALA LUMPUR: The Reciprocal Trade Agreement between Malaysia and the United States will only come into force after both countries complete the formal exchange of ratification notices, according to the Ministry of Investment, Trade and Industry Malaysia (MITI).
The ministry said the exchange of written notifications is required to confirm that all internal ratification procedures have been finalised and that both parties are fully prepared to implement the agreement.
This process is in line with Article 7.2 of the agreement, which outlines the legal requirements for its enforcement.
“Once the notification exchange process is completed, the agreement will enter into force within 60 days, or on another mutually agreed date,” MITI said in a written reply published on Parliament’s website.
The response was issued following a question raised by Muhyiddin Yassin, who sought clarification on the government’s position regarding the agreement, particularly claims that it cannot be withdrawn despite concerns over certain clauses.
He had questioned whether the government still retains the flexibility to review and renegotiate provisions deemed unfavourable to Malaysia’s interests.
In its reply, MITI emphasised that the government is conducting a comprehensive review of the agreement to ensure that its implementation remains consistent with the Federal Constitution, national development policies, and domestic legislation.
The ministry added that the review also takes into account Malaysia’s commitments under various international platforms, including existing free trade agreements.
Earlier, on January 20, Prime Minister Anwar Ibrahim said the agreement, although signed on October 26, 2025 during the 47th ASEAN Summit, has yet to be implemented.
He explained that the government remains in the negotiation phase and is seeking clear written assurances before proceeding with full enforcement.
The statement reflected the administration’s cautious approach towards international trade agreements, particularly those with major economic partners such as the United States.
Economic analysts view this stance as an effort to balance market liberalisation with domestic economic protection, ensuring that local industries and workers are not adversely affected.
While the agreement is expected to enhance market access, trade flows, and investment cooperation between Malaysia and the US, its implementation will depend on careful legal and policy alignment.
The government has reiterated that any final decision will be guided by national interests, long-term economic sustainability, and regulatory compliance.
-wilayah.com.my
