Kuala lumpur: The Ministry of Investment, Trade and Industry (MITI), alongside its agencies, is currently undertaking a comprehensive cost-benefit analysis (CBA) of the Agreement on Reciprocal Trade (ART) with the United States. This initiative aims to evaluate the potential economic implications for Malaysia before any commitment is made.

According to BERNAMA News Agency, MITI Minister Datuk Seri Johari Abdul Ghani revealed that the analysis, which is being supported by MIDF Research, is expected to take between six to twelve months to complete. The CBA will specifically focus on Malaysia's exports to the US, valued at RM233.1 billion, and the trade surplus of RM98.7 billion. This announcement was made during a question-and-answer session in the Dewan Rakyat, addressing queries from Dr Radzi Jidin (PN-Putrajaya) concerning the government's detailed approach to the ART.

In addition, Johari noted that Malaysia has not yet received any official communication from the US regarding the timeline for ratifying the ART. As a precaution, the government is re-evaluating the terms of the agreement to ensure that the country's economic interests are protected and any potential trade risks are minimized.

Johari highlighted the concern that the termination of the ART could lead to an unpredictable economic environment, as the imposition of unilateral tariffs remains a prerogative of the US. Initially, the US had planned to enforce a 25 percent reciprocal tariff on Malaysian exports, but after negotiations with MITI, this rate was reduced to 19 percent.