MALAYSIA’S reciprocal trade agreement with the United States does not include any provision requiring the country to export its rare earth elements exclusively to Washington, says Datuk Seri Arthur Joseph Kurup (pic).
The Natural Resources and Environmental Sustainability Minister said the Agreement on Reciprocal Trade (ART) does not create any exclusive commitments, supply obligations or market preferences that would bind Malaysia to export rare earth elements (REE) to any specific country.
“The government also wishes to stress that REE was never offered as a concession or quid pro quo in any trade or tariff negotiations with the United States,” he told Parliament during the debate on the motion of thanks for the Royal Address yesterday.
Malaysia and the United States signed ART in October last year, alongside a critical minerals agreement, during the Asean Summit in Kuala Lumpur attended by Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump.
Anwar has previously said ART has yet to come into force as negotiations are ongoing and the government is seeking clear written assurances.
Arthur added that Malaysia will continue to prohibit the export of raw REE in line with current policy to prevent the exploitation of strategic resources without value addition.
The policy is aimed at encouraging the development of the full domestic value chain, including processing, research and development, and downstream manufacturing, he said.
“It is formulated with long-term national interests in mind, taking into account federal and state jurisdictions, and to ensure the REE industry is developed in a sustainable and responsible manner,” he added.
