KUALA LUMPUR: Malaysia did not surrender its economic sovereignty by signing the United States-Malaysia Agreement on Reciprocal Trade with the United States, says US Ambassador to Malaysia Edgard D. Kagan.
He said that Malaysia, instead, has gained greater access to the US market, which has been its second-largest market so far.
Kagan said this to the media on Monday (Oct 27) at a briefing to sum up the visit of US President Donald J Trump over the past two days to Malaysia in conjunction with the Asean Summit 2025.
The Ambassador stated that President Trump has been impressed with Malaysia and has conveyed that Malaysia is a great economic partner to the United States.
He also praised Prime Minister Datuk Seri Anwar Ibrahim for his hospitality to Trump and said that “the fact that Trump danced during his welcome ceremony right off the plane showed his excitement to be here.”
Kagan pointed out that the US-Malaysia Agreement on Reciprocal Trade is “extraordinarily beneficial to both countries and critical for both countries.”
“There are issues on which we have disagreed, but the agreement safeguards Malaysian sovereignty by clearly stating that Malaysians will make the sovereign decisions to seek a closer relationship with the United States. This reflects the government’s policies,” said Kagan.
On the view that the reciprocal trade agreement may enable the US to influence Malaysia's free trade agreements with others in the future, Kagan said that it is not a surrender of sovereignty when such clauses are included, but rather a matter of what each partner should do to avoid harming each other.
“In any negotiation, you win some and lose some, and I do not think Malaysia has lost this. I believe what Malaysia obtained was what it wanted — access to the US market, which is crucial to Malaysia’s development.
“This agreement provides certainty and a pathway to a balanced trading relationship,” said Kagan.
He also called on critics to consider how imports from the US have helped drive Malaysia's economy and how Malaysian components made by American companies invested here have created jobs for Malaysians.
“Despite the tariffs being imposed, Malaysian exports to the US rose significantly and with all that uncertainty.
“Investment creates jobs in both countries, and jobs in the US pay twice the average Malaysian wage. So, having American companies and investments here will really benefit the people,” said Kagan.
