Kuala lumpur: The Agreement on Reciprocal Trade (ART) between Malaysia and the United States does not compromise national sovereignty and instead strengthens cooperation in digital trade, Digital Minister Gobind Singh Deo said. Speaking in Parliament while concluding debate on his ministry’s 2026 Budget allocation, he said Malaysia retains full autonomy in decision-making and is not bound by Washington.

According to BERNAMA News Agency, Gobind expressed support for Prime Minister Datuk Seri Anwar Ibrahim’s position that the agreement is non-binding and ensures Malaysia’s sovereignty remains intact. He emphasized that the agreement only addresses specific aspects of trade, particularly outlined in the digital provisions under Clause 3.1.

On the topic of Clause 3.1, which pertains to the Digital Services Tax, Gobind clarified that the agreement merely states Malaysia shall not impose discriminatory taxes on United States companies. He urged lawmakers to thoroughly understand the provisions under Clauses 3.1, 3.2, and 3.3 to prevent misinterpretation.

Gobind elaborated on Clause 3.3, highlighting that the phrase ‘Malaysia shall consult’ does not obligate Malaysia to accept or comply with any United States decision. The term ‘shall consult’ is often perceived as mandatory, but in this context, it signifies engagement rather than agreement, particularly when entering into new digital trade agreements that could jeopardize essential US interests.

Clause 3.2 addresses the facilitation of digital trade, emphasizing the importance of refraining from measures that could be considered discriminatory. Gobind underscored that the agreement does not bind Malaysia nor does it undermine the government’s ability to make independent decisions.