US inks trade agreement with Malaysia, Cambodia

(MENAFN) The United States signed major trade agreements with Malaysia and Cambodia, along with a critical minerals memorandum with Thailand on Sunday, coinciding with the signing of a peace accord between Phnom Penh and Bangkok in Kuala Lumpur.

US President Donald Trump presided over the ceremony alongside Malaysian Prime Minister Anwar Ibrahim, Cambodian Prime Minister Hun Manet, and Thai Prime Minister Anutin Charnvirakul.

"Alongside this peace treaty, we also are signing a major trade deal with Cambodia and a very important critical minerals agreement with Thailand," Trump said, emphasizing that continued economic cooperation would be tied to maintaining peace between Cambodia and Thailand.

"The United States will have robust commerce and cooperation, transactions ... with both nations, as long as they live in peace." The two countries had ended border hostilities earlier in July.

Prime Minister Charnvirakul announced a joint statement outlining the framework for a US-Thailand reciprocal trade agreement, targeting completion of tariff negotiations by the end of 2025. Thailand agreed to eliminate tariffs on roughly 99% of goods, while the US will maintain 19% reciprocal tariffs. The framework also addresses non-tariff barriers, labor rights, environmental protection, intellectual property, geographical indications, and digital trade commitments.

The critical minerals memorandum aims to enhance Thailand’s governance of resources, foster US-Thai company partnerships, and integrate the country into secure global supply chains. Both nations will exchange technical expertise, coordinate on priority projects, and protect their markets from unfair trade practices.

In Cambodia, the trade deal requires the elimination of tariffs on 100% of US industrial and agricultural products, while the US retains 19% reciprocal tariffs. The agreement also covers non-tariff barriers, labor rights, digital trade, services, investment, intellectual property, and state-owned enterprise practices. Air Cambodia will collaborate with Boeing to develop the country’s aviation ecosystem. Trump called the Cambodia trade deal "great for both countries."

With Malaysia, the agreements include a historic trade deal and a memorandum of understanding to expand trade and investment in critical minerals. US Trade Representative Jamieson Greer noted the importance of resilient and secure supply chains for manufacturing, technology, and the US economy.

Under the trade deal, Malaysia will provide preferential access for US industrial goods—including chemicals, machinery, metals, and vehicles—along with agricultural exports and fuel ethanol. The agreement includes commitments on addressing non-tariff barriers, enforcing environmental laws, combating counterfeit markets, preventing forced labor, and strengthening protections for intellectual property, digital trade, and state-owned enterprises. Kuala Lumpur also pledged not to restrict exports of critical minerals and rare earths to the US.

Significant commercial transactions were outlined, including Malaysia’s procurement of 30 aircraft with options for 30 more, $150 billion in semiconductor, aerospace, and data center equipment, up to $3.4 billion annually in liquefied natural gas, and $70 billion in US capital fund investments. The US-Malaysia critical minerals memorandum mirrors Thailand’s, focusing on sector governance, bilateral partnerships, and supply chain security.

In 2024, total trade between the US and Malaysia reached $86.5 billion, US-Cambodia trade totaled $13.5 billion, and US-Thailand trade amounted to $88.3 billion in goods and services.

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