US Envoy Kagan Denies Accusation Of "Lopsided" US-Malaysia Trade Deal

By Nina Muslim

KUALA LUMPUR, Oct 27 (Bernama) -- The United States Ambassador to Malaysia Edgard D.Kagan today denied claims by Malaysia’s opposition that the new reciprocal agreement between both countries disproportionately favours Washington, saying instead that the deal will boost confidence and increase US investment in Malaysia.

He said that the reciprocal trade agreement signed between Malaysia and the US on the sidelines of the 47th ASEAN Summit and Related Summits here on Sunday was not “lopsided” but resolved a trade imbalance between the two countries. 

He said rather than dampening enthusiasm, the trade agreement would instil confidence among investors to come and invest in Malaysia, while increasing Malaysia’s access to the US market. 

Kagan pointed out that exports to the US have increased this year despite the tariffs, initially set at 25 per cent in July before they were negotiated down to the current 19 per cent the following month.

“Investment is coming into Malaysia because of the desire to be part of well-oiled, well-integrated Western supply chains, where Malaysia plays a very, very strong role. So we think that this will help turbocharge that,” he added.

Under the trade deal sealed yesterday, tariffs on Malaysia remain at 19 per cent, although certain items are exempt, such as palm oil and semiconductors.

The US is Malaysia’s biggest export destination, but Malaysia’s second biggest trading partner after China.

-- BERNAMA