Malaysia's government is considering the potential advantages and disadvantages of its trade agreement with the United States, as concerns over the deal's impact on the country continue to mount. While doing so, they have emphasized the importance of keeping the accord to Malaysian lawmakers.
According to a report by Bernama, Malaysia's official news agency, the trade deal, known as the United States-Mexico-Canada Agreement (USMCA), has been a topic of debate within the Malaysian parliament. The agreement, which replaced the North American Free Trade Agreement (NAFTA), was signed in 2018 and came into effect on July 1, 2020.
The Malaysian International Trade and Industry Ministry (MITI) revealed that the government will conduct a thorough cost-benefit analysis to determine the implications of the USMCA on the country's economy. The ministry stated that the analysis will cover various sectors, including manufacturing, services, and agriculture.
Despite the ongoing assessment, the Malaysian government is urging parliamentarians to support the agreement. In a statement, the ministry reminded lawmakers that maintaining the USMCA is crucial to ensuring Malaysia's continued access to the US market. The ministry also emphasized that the deal would bring about new opportunities for Malaysian businesses in areas such as digital trade, intellectual property, and e-commerce.
In recent years, Malaysia has faced growing concerns over its trade relations with the US. In 2018, the US imposed tariffs on Malaysian exports, including steel and aluminum, under Section 232 of the Trade Expansion Act. The tariffs, which were later suspended in May 2019, resulted in a significant drop in Malaysia's exports to the US.
Conversely, the USMCA presents opportunities for increased cooperation between the two countries. Under the agreement, Malaysia is expected to benefit from improved market access to the US for certain products, such as automobiles and agricultural products.
The Malaysian government's decision to study the USMCA comes as other countries, such as Australia and the United Kingdom, consider joining the agreement. In late 2020, the US announced that it had reached in-principle agreements with both countries to join the USMCA.
As Malaysia weighs the potential benefits and drawbacks of the USMCA, the country's political leaders and businesses will be closely watching developments to determine the impact on the Malaysian economy and its trade relations with the US.
Sources:
- Bernama. (2021, February 22). Malaysia To Study USMCA But Warns Against Quitting Pact. Retrieved from https://www.bernama.com/en/business/news.php?id=1985612.
Malaysia's government is considering the potential advantages and disadvantages of its trade agreement with the United States, as concerns over the deal's impact on the country continue to mount. While doing so, they have emphasized the importance of keeping the accord to Malaysian lawmakers.
According to a report by Bernama, Malaysia's official news agency, the trade deal, known as the United States-Mexico-Canada Agreement (USMCA), has been a topic of debate within the Malaysian parliament. The agreement, which replaced the North American Free Trade Agreement (NAFTA), was signed in 2018 and came into effect on July 1, 2020.
The Malaysian International Trade and Industry Ministry (MITI) revealed that the government will conduct a thorough cost-benefit analysis to determine the implications of the USMCA on the country's economy. The ministry stated that the analysis will cover various sectors, including manufacturing, services, and agriculture.
Despite the ongoing assessment, the Malaysian government is urging parliamentarians to support the agreement. In a statement, the ministry reminded lawmakers that maintaining the USMCA is crucial to ensuring Malaysia's continued access to the US market. The ministry also emphasized that the deal would bring about new opportunities for Malaysian businesses in areas such as digital trade, intellectual property, and e-commerce.
In recent years, Malaysia has faced growing concerns over its trade relations with the US. In 2018, the US imposed tariffs on Malaysian exports, including steel and aluminum, under Section 232 of the Trade Expansion Act. The tariffs, which were later suspended in May 2019, resulted in a significant drop in Malaysia's exports to the US.
Conversely, the USMCA presents opportunities for increased cooperation between the two countries. Under the agreement, Malaysia is expected to benefit from improved market access to the US for certain products, such as automobiles and agricultural products.
The Malaysian government's decision to study the USMCA comes as other countries, such as Australia and the United Kingdom, consider joining the agreement. In late 2020, the US announced that it had reached in-principle agreements with both countries to join the USMCA.
As Malaysia weighs the potential benefits and drawbacks of the USMCA, the country's political leaders and businesses will be closely watching developments to determine the impact on the Malaysian economy and its trade relations with the US.
Sources:
- Bernama. (2021, February 22). Malaysia To Study USMCA But Warns Against Quitting Pact. Retrieved from https://www.bernama.com/en/business/news.php?id=1985612.
