MPs call for RCI on reciprocal trade deal


SEVERAL MPs have called for a Royal Commission of Inquiry (RCI) to be set up to investigate the signing of the United States-Malaysia Reciprocal Trade Agree­ment.

They called for the RCI to examine claims that Malaysia was “forced” into negotiations, why an agreement was signed instead of a Memorandum of Understanding (MOU) or framework, and to recommend stronger governance and consultation mechanisms for future trade deals.

The MPs said that the pact, signed on Oct 30, favoured the United States significantly.

In a joint statement, Wong Chen (PH-Subang), Nik Nazmi Nik Ahmad (PH-Setiawangsa) and Rafizi Ramli (PH-Pandan) referenced Deputy Investment, Trade and Industry Minister Liew Chin Tong’s statement on Nov 3, where he said Malaysia had been compelled into negotiations, not entering on equal terms.

They added that Articles 5.1, 5.2 and 5.3 of the agreement could constrain Malaysia’s sovereign rights if exercised by the United States, potentially forcing Malay­sia to align with US national security and economic interests – a departure from Malaysia’s policy of active neutrality and Asean centrality.

“We agree with the Prime Minister, who on Oct 30, asserted in Parliament that Malaysia has an ‘exit clause’ and can terminate the agreement as a way out of the sovereignty question,” they said.

While acknowledging legal options to amend or terminate the agreement, the MPs raised concerns over, among others, trade balance and fiscal implications.

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