The White House has announced reciprocal trade agreements with Cambodia and Malaysia, joint trade statements with Thailand and Vietnam, and memoranda of understanding ( MOUs ) on critical minerals with Malaysia and Thailand.

Signed by US President Donald Trump and Southeast Asian leaders attending the Association of Southeast Asian Nations ( Asean ) summit in Kuala Lumpur on October 26, the deals accompanied a joint declaration by Cambodia and Thailand cementing a ceasefire that followed armed border clashes in July.

Trump and Malaysian Prime Minister Anwar Ibrahim witnessed the declaration by Cambodian Prime Minister Hun Manet and Thai Prime Minister Anutin Charnvirakul – signed on the sidelines of the Asean summit.

The trade agreements and statements maintain US tariffs announced earlier — 19% for Cambodia, Malaysia and Thailand, and 20% for Vietnam.

“These landmark deals demonstrate that America can maintain tariffs to shrink the goods trade deficit,” says Jamieson Greer, US trade representative, “while opening new markets for American farmers, ranchers, workers and manufacturers.”

Trade agreements

The White House highlighted, in a separate statement from that of the declaration by Cambodia and Thailand, the trade deal with Malaysia.

Under the agreement, “Malaysia will eliminate or reduce tariffs on nearly all US exports,” it says, “and allow non-discriminatory or preferential market access for US agricultural and industrial goods.”

Malaysia will also address non-tariff barriers, such as discriminatory practices on imports of US motor vehicles.

In addition, Malaysia, will recognize US regulatory oversight so US farm products can be exported to it, the statement notes, “without burdensome and duplicative regulatory requirements”.

The White House also announced “groundbreaking deals” with Malaysia, including the purchase of 30 Boeing aircraft with an option for 30 more and purchases of US semiconductors, aerospace components and data centre equipment with an estimated value of US$150 billion.

Cambodia has, meanwhile, agreed to “eliminate all tariffs on US goods, including food and agricultural products and industrial goods” and will also recognize US regulatory oversight.

“US exports to Cambodia will no longer face competitive disadvantages,” the White House points out, “vis-à-vis other trading partners.”

Frameworks

The joint statements with Thailand and Vietnam referred to frameworks for agreements to be finalized “in the coming weeks”.

Under the upcoming “reciprocal trade” agreement with Thailand, the Southeast Asian nation, the statement shares, “will eliminate tariff barriers on approximately 99% of goods”.

The separate deal with Vietnam – described as a broader agreement on “reciprocal, fair and balanced trade” – will address tariff and non-tariff barriers for US agricultural products and industrial goods.

“Vietnam will provide preferential market access,” the statement shares, “for substantially all US industrial and agricultural exports to Vietnam.”

Critical minerals

The MOU with Malaysia “will lead to an expansion of trade and investments in critical minerals, including in exploration, extraction, refinement, manufacturing, recovery and recycling. This will create new opportunities for US and Malaysian companies, open up alternative markets for critical minerals and help diversify global critical mineral supply chains."

The MOU with Thailand, the White House adds, “will secure and diversify critical minerals supplies, promote partnerships between US and Thai companies, and increase global supply-chain resilience.

“Importantly, these efforts will mitigate the negative impact of anti-competitive behaviour and unfair trade practices, such as dumping, heavy subsidies and low standards through price floors and similar measures.”