Kuala lumpur: Malaysia has the right to terminate its Agreement on Reciprocal Trade (ART) with the United States at any time through written notice without requiring the consent of the US, said the Attorney-General's Chambers (AGC). In a statement, the AGC explained this provision is contained within Article 7.5 of the ART, which underscores the agreement's aim to defend and preserve Malaysia's sovereignty and protect the country's interests.

According to BERNAMA News Agency, the ART will only be activated 60 days post the exchange of written notifications by both parties, confirming the completion of their respective domestic legal procedures. "The implementation of obligations and commitments under this agreement by Malaysia is subject to applicable Malaysian domestic laws and procedures," the AGC further clarified.

The agreement also allows for good-faith consultations between Malaysia and the US on implementation issues before any action can be taken by either party. Nevertheless, Article 7.1 stipulates that both Malaysia and the US, as members of the World Trade Organisation, will continue to uphold the rights, obligations, and protections set forth under the WTO agreement for international trade.

Malaysia and the US signed the ART on October 26 during the 47th ASEAN Summit in Kuala Lumpur. The agreement is part of a US initiative to renegotiate tariffs on Malaysia from 25 percent to 19 percent, following Executive Order 14257 issued by US President Donald Trump on April 2, 2025.

The Ministry of Investment, Trade and Industry (MITI) spearheaded the negotiations for Malaysia, with the US represented by the Office of the United States Trade Representative. MITI also engaged relevant ministries and agencies during the discussions, while policy decisions related to the ART were made by the Cabinet after evaluating economic, political, and legal considerations.