Agreement Between the United States of America and Malaysia on Reciprocal Trade

Key Points

• President Trump and the Prime Minister of Malaysia signed a new deal to make it easier for the two countries to trade. The agreement lowers taxes on goods and removes complicated rules that often make it hard for American farmers and businesses to sell their products in Malaysia.
• Malaysia has committed to helping direct approximately $70 billion into new jobs and projects within the United States over the next 10 years. This includes 'greenfield' investments, which means building new offices or factories from the ground up to create more work for Americans.
• The deal protects American technology by banning Malaysia from taxing digital services or forcing U.S. companies to hand over their secret software code. It also ensures that American food products, like specific types of meat and cheese, can be sold in Malaysia without being blocked by unfair naming rules.
• Malaysia agreed to follow U.S. security rules by blocking trade with certain foreign companies that are considered a threat to national security. They will also work to stop 'transshipment,' which is a trick where companies move goods through another country to avoid paying U.S. taxes.
• The agreement requires Malaysia to ban any products made with forced labor and to protect the rights of its workers. It also requires Malaysia to enforce its environmental laws and ensures that government-owned companies in Malaysia do not have an unfair advantage over private American businesses.