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Malaysia-US ART Yet To Be Implemented, Says PM Anwar

Kuala lumpur: The Malaysia-United States (US) Agreement on Reciprocal Trade (ART) inked during the 47th ASEAN Summit has yet to come into force as the government is still in the negotiation phase and seeking clear written assurances, said Prime Minister Datuk Seri Anwar Ibrahim. 'The provisions under the agreement have not been enforced, as the US is still allowing room for responses and there is no fixed timeline for the conclusion of those responses,' he said during the Ministers' Question Time in the Dewan Rakyat today.

According to BERNAMA News Agency, Anwar, who is also the Finance Minister, was responding to a supplementary question from Ahmad Tarmizi Sulaiman (PN-Sik) on assurances that the ART would not undermine Malaysia's sovereignty and whether the government had issued a written notification regarding the agreement. He stated that the government has sought assurances through discussions with the US Trade Representative (USTR), while standing firm that such assurances should be clearly stated in writing.

He further mentioned that the assurances were given and recorded in the minutes of the meeting with the USTR, but emphasized that these assurances should be in writing and made as an annex to the agreement. These details have yet to be finalized. The Prime Minister shared that the matter was also discussed during the Cabinet meeting and will be refined by the Minister of Investment, Trade and Industry (MITI).

He highlighted that the government is taking concerns seriously over the potential impact of the agreement on Malaysia's domestic policy space, including subsidies, sensitive strategic controls, and the country's neutral policy stance. The Cabinet meeting will address these issues, including proposals for improvements, adjustments, or clarifications. 'I have been informed by the MITI minister that there are 35 questions that need to be addressed,' said Anwar.

He assured that the drafting of national policies related to the ART does not require any amendments to the Federal Constitution, as it does not conflict with the Constitution and its underlying principles. Meanwhile, Anwar noted that Malaysia is not immune to economic and security pressures from major powers, but the government's strategy continues to focus on strengthening regional and international cooperation at the ASEAN level, expanding engagement with the European Union (EU) and ASEAN-EU, and enhancing relations and agreements with other countries, including Brazil, South Africa, China, Australia, and India. 'We protect our country from excessive pressure by strengthening international relations and maintaining diplomacy,' he said.

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