KUALA LUMPUR – US Ambassador to Malaysia, Edgard D. Kagan, has rejected claims that the new reciprocal trade agreement between Malaysia and the United States undermines Malaysia’s sovereignty.
He argued that the agreement strengthens the bilateral partnership rather than compromising Malaysia’s independence.
“This is not a surrender of sovereignty. It is a recognition that we’re moving into a new phase in the relationship,” Kagan said at a press conference on Monday, as quoted by local media.
The Ambassador further clarified that Malaysia made a “sovereign decision” to enter into the agreement, asserting that it protects Malaysia’s sovereignty by explicitly stating that the country has chosen to deepen ties with the US.
“The deal protects Malaysia’s sovereignty by making clear that Malaysia is choosing a closer relationship with the US,” he added.
Kagan also downplayed concerns over certain provisions of the agreement that critics, including opposition leaders, have raised. He described the clauses as “normal” and explained that if any provision impacted one of the parties, both governments would address the issue through appropriate diplomatic channels.
“This is what you do between close partners,” he remarked.
Earlier, Perikatan Nasional (PN) Secretary-General Datuk Seri Azmin Ali had expressed concerns over the trade deal, claiming that it could potentially jeopardise Malaysia’s economic sovereignty.
Azmin, who is also the former International Trade and Industry Minister, argued that some clauses would compel Malaysia to adopt any US trade sanctions against other nations, which he believes could restrict Malaysia’s policy-making flexibility.
The agreement, signed on the sidelines of the 47th Asean Summit and Related Summits on Sunday, aims to enhance Malaysia-US economic relations, broaden market access, and improve supply chain resilience.
Under the deal, Malaysia will grant preferential market access to US exports, including industrial goods such as chemicals, machinery, electrical equipment, metals, and passenger vehicles, as well as agricultural products like dairy, poultry, and rice. In return, the US will maintain a 19% tariff on Malaysian goods, while some products will benefit from a 0% tariff under a list of aligned partners.
Kagan noted that the agreement represents a shift towards a more balanced trading relationship between the two countries, which he described as having been “lopsided” in favour of Malaysia for many years.
“US markets have long been far more open to Malaysians than the Malaysian market has been to Americans,” he said, adding that the agreement was designed to make trade as open as possible for both nations. – October 27, 2025