(Kuala Lumpur, 22nd) Following confirmation from US President Trump that he will attend the upcoming 47th ASEAN Summit, ASEAN and the US are expected to sign a reciprocal trade agreement (ART) at the summit, further strengthening economic cooperation.
Minister of Investment, Trade and Industry, Tengku Zafrul, said that ASEAN-US bilateral relations will make significant progress, and that the agreement will bring mutual benefits to both parties.
He said the agreement will promote complementary advantages on both sides and further consolidate the economic strength of ASEAN, which has a population of over 600 million.
He made these remarks in a joint interview with reporters today, during a session themed "How ASEAN Economic Prosperity Supports Regional Political Stability."
"We are close to finalizing the text of the reciprocal trade agreement. I believe the US is in discussions with some ASEAN countries to finalize this agreement. We hope and plan for the two sides' leaders to sign the agreement at this summit.
"For ASEAN, we want to show the US, especially the Trump administration, that we maintain engagement with all countries, including the US. More importantly, ASEAN can serve as a partner for all countries, including the US."
The 47th ASEAN Summit will be held in Kuala Lumpur from the 26th to the 28th of this month, bringing together leaders from the ten ASEAN member states, as well as major dialogue partners including the US, China, Japan, and India. Trump personally confirmed his attendance yesterday.
According to reports, Malaysia and the US are expected to sign a reciprocal tariff agreement during this meeting, benefiting industries such as agriculture, industrial manufacturing, and businesses engaged in trade and investment with the US.
In the first nine months of this year, trade between Malaysia and the US remained strong, with a growth rate as high as 15.4%, reaching 270.88 billion ringgit; exports grew by 18.2% to 166.38 billion ringgit, mainly driven by greater exports of electronics and electrical products, machinery and equipment parts, and processed food; imports from the US grew by 11.2% to 104.5 billion ringgit.
As a binding framework for future bilateral economic cooperation, the reciprocal trade agreement covers six major areas: tariffs and quotas, non-tariff barriers, digital trade and technology, rules of origin, economy and national security, and business considerations.
On the other hand, Zafrul said that ASEAN’s goal is to be complementary to the US, not competitive, and to cooperate by strengthening and supporting the US supply chain.
"For example, in the semiconductor sector, many ASEAN countries play a key role in the semiconductor industry, which is also a crucial part of the supply chain.
"We are not replacing, but rather, by means of our supply chain systems, reinforcing the US supply chain. Therefore, we need to showcase the complementarity between the ASEAN economies and the US."
In 2024, the trade volume of goods between ASEAN and the US is expected to reach 476.8 billion US dollars, with US exports to ASEAN estimated at 124.6 billion US dollars, while imports from the region are expected to reach 352.3 billion US dollars.