Malaysia Reserves Right to Terminate US Reciprocal Trade Deal at Any Time, Says AGC

KUALA LUMPUR — The Attorney General’s Chambers (AGC) stated that Malaysia retains the right to terminate the Agreement on Reciprocal Trade (ART) with the United States at any time through written notification, without requiring U.S. consent.  Under Article 7.5 of the agreement, the sovereignty and national interest of Malaysia are protected. Implementation of commitments under the ART is subject to Malaysian domestic laws and procedures, the AGC clarified. 

Trade Deal

The ART, signed on 26 October 2025 during the ASEAN 47 summit, aims to reduce U.S. tariffs on Malaysian exports from 25 % to 19 %.  Article 7.2 stipulates the deal will come into force 60 days after both parties exchange written confirmation of domestic compliance.  Both Malaysia and the U.S., as members of the World Trade Organization (WTO), will continue to honour their rights and obligations under existing WTO frameworks. 

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