US Finalises Trade and Minerals Pacts with Four Southeast Asian Nations

The United States has finalised a series of trade and critical minerals agreements with four Southeast Asian nations, the White House announced on 26 October.

President Donald Trump concluded reciprocal trade agreements with the leaders of Malaysia and Cambodia and signed a framework trade agreement with Thailand. All parties committed to addressing both tariff and non-tariff barriers.

A White House joint statement detailed that under these pacts, the US will maintain a 19% tariff rate on exports from Malaysia, Cambodia, and Thailand, with tariffs on certain goods gradually reduced to zero. Washington also announced a similar framework agreement with Vietnam, whose exports currently face a 20% tariff rate.

Vietnam, which recorded a US$123 billion trade surplus with the US last year, pledged to substantially increase purchases of American products to narrow the bilateral trade gap.

In a separate development on Sunday, President Trump signed two distinct agreements with Thailand and Malaysia, aiming to foster cooperation in diversifying supply chains for critical minerals.

These signings were preceded by a ceremony where President Trump witnessed Thailand and Cambodia sign an enhanced ceasefire agreement. The two nations were involved in deadly border clashes earlier this year.

Under the newly established trade frameworks, the four Southeast Asian nations committed to removing trade barriers and providing preferential market access for a range of US products. The agreements also include commitments on digital trade, services, and investment. In return, the Southeast Asian partners provided assurances on labour rights protection and enhanced environmental safeguards.

Official statements indicated that Thailand, Malaysia, and Vietnam have further agreed to permit the import of vehicles that meet US motor vehicle safety and emissions standards.

Malaysia has also consented to streamline regulatory requirements for US cosmetics and pharmaceutical products. Malaysia's Minister of International Trade and Industry, Tengku Zafrul Aziz, stated that Malaysia secured tariff exemptions for its exports of aerospace equipment, pharmaceutical products, and commodities, including palm oil, cocoa, and rubber.

Thailand announced it would eliminate tariff barriers on approximately 99% of goods and relax foreign ownership restrictions in its telecommunications sector. Both sides noted that several commercial deals between Thai and US companies are nearing completion, including annual purchases of feed corn and soybean meal valued at approximately US$2.6 billion.

Furthermore, Thailand committed to procuring 80 US-manufactured aircraft worth US$18.8 billion and to purchasing approximately US$5.4 billion worth of American energy products annually, including liquefied natural gas and crude oil.