Kuala lumpur: The United States has successfully signed significant trade agreements with Malaysia and Cambodia, alongside a critical minerals deal with Thailand, following a peace accord between Phnom Penh and Bangkok. This pivotal event took place in Kuala Lumpur, under the leadership of US President Donald Trump, who was joined by Malaysian Prime Minister Anwar Ibrahim, Cambodian Prime Minister Hun Manet, and Thai Prime Minister Anutin Charnvirakul.
According to Anadolu Agency, President Trump emphasized the connection between economic cooperation and peace, highlighting the US commitment to fostering robust commerce and cooperation with Cambodia and Thailand, contingent on maintaining peace. This development follows the cessation of border hostilities between the two countries in July.
The trade frameworks are extensive, with Thailand agreeing to eliminate tariffs on about 99% of goods, while the US will maintain 19% reciprocal tariffs. The agreement covers non-tariff barriers, labor rights, environmental protection, intellectual property, and digital trade. Additionally, a memorandum of understanding on critical minerals cooperation was established to enhance resilient and sustainable supply chains.
In a separate deal, Cambodia is set to remove tariffs on all US industrial goods and agricultural products, with the US maintaining 19% reciprocal tariffs. This agreement also focuses on non-tariff barriers, labor rights, digital trade, and intellectual property. Notably, Air Cambodia will collaborate with Boeing to advance the country's aviation sector.
In Malaysia, a historic trade deal and a memorandum of understanding on critical minerals were also signed, aiming to expand trade and investments in crucial sectors. Jamieson Greer, the US trade representative, emphasized the importance of resilient and free trade investment in critical minerals, vital for manufacturing and technology.
The agreements with Malaysia promise significant preferential access for US industrial and agricultural goods, addressing non-tariff barriers, and enforcing environmental laws. Kuala Lumpur has committed to not imposing quotas on critical minerals exports to the US. The commercial transactions include Malaysia's procurement of aircraft, semiconductor investments, and LNG purchases.
The trade volume figures for 2024 underscore the significance of these agreements, with US-Malaysia trade at $86.5 billion, US-Cambodia trade at $13.5 billion, and US-Thailand trade at $88.3 billion.