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 Malaysia has instead gained more access into the US market, which has been its second largest market so far.
Malaysia and the US signed a wide-ranging reciprocal trade deal on Sunday aimed at strengthening bilateral economic ties, expanding market access and bolstering supply chain resilience.
Kagan pointed out that the agreement was extraordinarily beneficial to both countries.
“Despite what people say that this will kill trade, it will also unlock investment... makes it much easier for investors to decide. We are looking at investments from both sides.
“The US is the largest investor in Malaysia. Malaysia did a good job as negotiator,” he said, adding that 12% of Malaysian exports to the US will now be exempt from tariffs.
“And this will pay huge dividends over the coming months,” he told a press briefing to sum up US President Donald Trump’s visit here for the 47th Asean Summit and Related Summits.
The envoy urged critics to consider imports from the United States to Malaysia which he said had helped drive Malaysia’s economy and the number of jobs created.
“This is a reciprocal trade agreement. From the US perspective, it is in our interest to have a reciprocal trade relationship - one where each country is as open to the other.
“The goal here is to try to end up in a situation where we have a balanced trading relationship.”
Kagan said Trump was impressed with Malaysia which he described as a great economic partner of the United States.
“The fact that the president danced during his welcoming ceremony right off the plane showed his excitement to being here,” said Kagan, who also thanked Prime Minister Datuk Seri Anwar Ibrahim for his warm hospitality to the president and his delegation.
