TWN Info Service on WTO and Trade Issues (Oct25/19)
29 October 2025
Third World Network

Trade: US signs trade pacts with four ASEAN nations
Published in SUNS #10320 dated 29 October 2025

Geneva, 28 Oct (D. Ravi Kanth) — The United States Trade Representative (USTR) has released fact sheets detailing agreements signed between US President Donald Trump and the heads of Malaysia, Cambodia, Thailand, and Vietnam in Kuala Lumpur on 26 October.

Issuing the separate Reciprocal Trade Agreements with Malaysia and Cambodia, as well as the Frameworks for Agreements on Reciprocal Trade with Thailand and Vietnam, the USTR, Ambassador Jamieson Greer, declared: “President Trump continues to secure historic trade deals to lower tariffs on US exports and eliminate trade barriers, strengthening America’s economic and national security interests.”

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

The USTR thanked his counterparts from the four nations “for their collaboration and commitment in achieving a more balanced trade relationship with the United States.”

However, a cursory glance at the documents suggests a proverbial “one-way street” of unprecedented tariff and non-tariff concessions offered to the world’s largest economy, including reverse special and differential treatment, according to people familiar with the development.

In effect, the agreements seem to indicate the emergence of a unilateral trade order or a “naked form” of Pax Americana, abandoning the semblance of compliance with global trade rules that the US helped set up since 1948, beginning with the General Agreement on Tariffs and Trade (GATT) and later the WTO in 1995, said people familiar with the development.

While the four agreements grant the US substantial market access with close to zero percent tariffs for American products, Malaysia, Cambodia, and Thailand agreed to face a unilateral tariff of 19% on their goods exported to the American market, while Vietnam accepted a 20% tariff on its goods shipped to the US.

TARIFFS

Malaysia: According to the USTR fact sheet, Malaysia “has committed to provide significant preferential market access for US products exported to Malaysia across goods sectors, including chemicals, machinery and electrical equipment, metals, passenger vehicles, dairy, horticultural products, poultry, pork, rice, and fuel ethanol, which will create commercially meaningful market access opportunities for a significant range of US exports, supporting high-quality American jobs.”

In turn, the US “will maintain a 19 percent reciprocal tariff rate for imports of Malaysia except for identified products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, which will receive a zero percent reciprocal tariff rate.”

Cambodia: The fact sheet states that Cambodia, a least-developed country, agreed to eliminate “tariffs on 100 percent of US products exported to Cambodia, creating commercially meaningful market access opportunities for the full range of US exports, supporting high-quality American jobs.”

Despite this zero-tariff access for American goods, Cambodia agreed to “a 19 percent reciprocal tariff rate for imports of Cambodia except for identified products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, which will receive a zero percent reciprocal tariff rate.”

Thailand: A leading global farm economy, Thailand has committed to “eliminate tariffs on 99 percent of goods, covering a full range of US industrial and food and agricultural products.”

In turn, the US “will maintain a 19 percent reciprocal tariff rate for imports of Thailand and will identify products from the list set out in Annex III, to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, to receive a zero percent reciprocal tariff rate.”

Vietnam: This rising Southeast Asian exporter has committed to “provide preferential market access for US exports by removing tariffs on almost all goods, including food and agricultural products, which will create commercially meaningful market access opportunities for the full range of US exports, supporting high-quality American jobs.”

In contrast to the 19% rate for the others, the fact sheet states that the US “will maintain the 20 percent reciprocal tariff rate for imports of Vietnam and will identify products from the list set out in Annex III to Executive Order 14346 of September 5, 2025, Potential Tariff Adjustments for Aligned Partners, to receive a zero percent reciprocal tariff rate.”

NTBs ON US INDUSTRIAL EXPORTS

In addition to tariff concessions, the four countries committed to bringing down non-tariff barriers (NTBs) for American industrial goods, particularly pharmaceuticals and equipment, based on specific US demands.

While the underlying features are similar, their significance varies, said people familiar with the agreements.

Malaysia “has committed to address a range of non-tariff barriers, including by: (1) accepting US manufactured vehicles built to US motor vehicle safety and emissions standards; (2) accepting US Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals; (3) streamlining import licenses for US alloy steel and pipe products, and steel-containing goods; and (4) removing restrictions on imports of re-manufactured goods.”

Cambodia “has committed to address a range of non-tariff barriers, including by: (1) streamlining and reducing import licensing and regulatory requirements; (2) accepting US manufactured vehicles built to US motor vehicle safety and emissions standards; and (3) accepting US Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals.”

Thailand has committed to “addressing barriers to US exports, including by: (1) accepting US manufactured vehicles manufactured to comply with US federal motor vehicle safety and emissions standards; (2) accepting US Food and Drug Administration certificates and prior marketing authorizations for medical devices and pharmaceuticals as sufficient to meet Thailand’s requirements; (3) issuing import permits for US ethanol for fuel; (4) amending its customs laws to remove the customs reward system related to customs breaches and penalties; and (5) adopting and implementing good regulatory practices.”

Vietnam took on broader commitments, including by: “(1) accepting vehicles built to US motor vehicle safety and emissions standards; (2) allowing imports of re-manufactured goods from the United States; (3) approving pending marketing authorizations for US medical devices that are legally approved or cleared in the United States and previously marketed in Viet Nam, as well as expediting approvals for new import licenses applications; (4) streamlining regulatory requirements and approvals for US pharmaceutical products extending the valid time periods for import licenses for goods with cryptography; and (5) fully implementing certain international intellectual property treaties, including the World Intellectual Property Organization Internet Treaties.”

Further, the US and Vietnam “will continue to finalize outstanding issues to address barriers for US exports.”

NTBs ON US AGRICULTURAL EXPORTS

According to the fact sheet, Malaysia committed to addressing NTBs, including through: “(1) recognition of the US food safety system for US meat, poultry, and dairy products; (2) streamlined halal certification of US food and agricultural products; (3) opening market access for US sorghum to Malaysia; and (4) adoption of regionalization approaches to facilitate US exports of pork and poultry.”

Cambodia agreed to a broad commitment under which it “has committed to address and prevent barriers to US agricultural exports in the Cambodian market, including by recognizing US regulatory oversight and accepting certificates issued by US regulatory authorities, as well as recognizing US sanitary and phytosanitary measures and other measures for food and agricultural products.”

Thailand, a leading farm exporter, committed to “address and prevent barriers to US food and agricultural products in the Thai market, including by: (1) expediting access for US Food Safety and Inspection Service- certified meat and poultry products; (2) addressing trade irritants and ensure requirements imposed on horticultural products, including for distiller dried grains with solubles, are science- and risk-based; and (3) accepting currently agreed certificates issued by US regulatory authorities.”

Vietnam agreed to “address and prevent barriers to US agricultural products in the Vietnamese market, including with regard to US regulatory oversight, and Viet Nam continuing to accept certificates issued by US regulatory authorities, facilitate trade in agricultural products, and maintain access for US agricultural goods, including for specialty cheeses and meats. Viet Nam has already improved access for US peaches and nectarines through its agreement to a systems approach.”

DIGITAL TRADE, SERVICES, INVESTMENT

The US also secured commitments on digital trade, services, and investment, including on cross-border data flows.

According to the fact sheet, Malaysia “has made comprehensive commitments on digital trade, services, and investment”, including refraining “from imposing digital services taxes or requiring US social media platforms and online service providers to pay into Malaysia’s domestic fund; ensure the transfer of data across trusted borders for the conduct of business; support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization; and remove broadcasting restrictions on US programming.”

Cambodia has “made comprehensive commitments on digital trade, services, and investment, including commitments to support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization, ensure the transfer of data across trusted borders for the conduct of business, and refrain from imposing digital services taxes or other discriminatory measures.”

The United States and Thailand “will finalize commitments to address barriers impacting digital trade, services, and investment, including: (1) refraining from imposing digital services taxes or measures that discriminate against US digital services or digital products; (2) ensuring the free transfer of data across trusted borders for the conduct of business; (3) supporting a permanent moratorium on customs duties on electronic transmissions at the WTO; (4) refraining from imposing screen quotas for film; (5) removing in-country processing requirements for all domestic retail electronic payment transactions for debit cards issued in Thailand; and (6) easing foreign ownership restrictions for US investment in Thailand’s telecommunications sector.”

The United States and Vietnam will continue to “finalize commitments on digital trade, services, and investment.”

However, “Viet Nam committed to refrain from imposing customs duties on electronic transmissions, and affirmed that it does not require licenses for cross-border data transfers out of Viet Nam.”

IPR PROTECTION

According to the fact sheet, Malaysia “has made commitments that will benefit American innovators and creators by enhancing intellectual property protection and prioritizing enforcement against intellectual property theft. This includes joining and fully implementing key international intellectual property treaties and combatting notorious markets for counterfeiting and piracy.”

Cambodia “has made commitments that will benefit American innovators and creators by enhancing intellectual property protection and prioritizing enforcement against intellectual property theft. This includes joining and fully implementing key international intellectual property treaties and combatting notorious markets for counterfeiting and piracy.”

The United States and Thailand will finalize “commitments on intellectual property, including on geographical indications.”

Yet, Thailand has committed “to resolve long-standing intellectual property issues, including regarding enforcement against trademark counterfeiting and copyright piracy, rogue collective management organizations, circumvention of technological protection measures, and the patent backlog.”

The United States and Vietnam “will continue to engage, through the negotiations, to address intellectual property, labour, customs, and good regulatory practices.”

RARE EARTH MINERALS

The fact sheets show no specific commitments on critical rare earth minerals except with Malaysia.

According to the fact sheet, Malaysia “has committed to the expedient development of its critical minerals and rare earths sectors in partnership with US companies, including by: (1) refraining from banning, or imposing quotas on, exports to the United States of critical minerals or rare earths elements; (2) granting extended operating licenses so that businesses have the certainty to increase production capacity; and (3) ensuring that no restrictions are imposed on the sale of rare earth magnets to US companies.”

The framework agreements also cover labour, environmental, and economic security issues, under which the four ASEAN members will undertake substantial commitments.

In conclusion, the framework agreements appear to signal the end of the multilateral trade order, seemingly forcing countries to make commitments under the proverbial “Damocles Sword” of a new US unilateral trade order, said people familiar with the agreements. +