@ AGROBiz | November-December. 2025

• The 47th ASEAN Summit 2025 convened in Kuala Lumpur, gathering leaders from 10 ASEAN nations and global partners.

• Malaysia and the US signed a new agricultural tariff agreement covering palm oil, poultry, and tropical fruits.

• US President Donald Trump attended for the first time, signalling renewed American interest in Southeast Asia.

BY ADELINE ANTHONY ALPHONSO

The summit, hosted in Kuala Lumpur from Oct 26 to 28, focused on strengthening economic integration, addressing supply chain disruptions and promoting sustainable growth across the region.

Held under the theme“ Advancing Resilience Through Economic Cooperation,” this year’ s summit underscored ASEAN’ s push to strengthen intra-regional trade while managing global economic shifts.

AGRICULTURE AT THE FOREFRONT

Among the many high-level engagements, one stood out: the signing of the Malaysia-US Agreement on Reciprocal Trade( ART), a wide-ranging pact that signalled Washington’ s renewed interest in Southeast Asia— and marked the first-ever ASEAN appearance of US President Donald Trump.

The deal, signed by Prime Minister Datuk Seri Anwar Ibrahim and Trump on the sidelines of the summit, covered multiple sectors, including agriculture.

Under the agreement, Malaysia committed to recognising the United States’ food safety and agricultural standards for meat, poultry, and dairy products. This move effectively grants legal equivalence to US regulatory systems and allows American exports certified by the US Department of Agriculture( USDA) to automatically meet Malaysia’ s import standards.

The pact’ s agricultural section includes provisions for recognition of US food-safety systems, streamlined halal certification, and market access for American sorghum. Malaysia is also obliged to accept official US export certification documents without requiring additional domestic verification.

One of the most significant elements is the clause requiring Malaysia to accept halal certification from US certifiers designated by JAKIM, without further local processes.

This streamlining could expand halal trade flows between the two nations and strengthen US access to

TRADE BEYOND BORDERS: The deal aims to reduce trade barriers and boost bilateral agricultural trade by up to 20 per cent.

the regional halal market, estimated to be worth trillions globally.

To align with the World Trade Organisation( WTO) and World Organisation for Animal Health( WOAH) standards, Malaysia must also adjust its import procedures and disease-control measures, including limiting poultry and swine import bans to affected US counties rather than nationwide restrictions.

The trade pact further accelerates Malaysia’ s acceptance of biotechnology and chemical residue standards approved by US regulators. This includes recognising US thresholds for pesticide and veterinary drug residues where local standards do not exist and fast-tracking approval for agricultural biotechnology products.

Beyond agriculture, the broader

The 47th ASEAN Summit 2025

MALAYSIA GAINS

Preferential access for palm oil, tropical fruits

Streamlined entry for Malaysian halal exports

Increased U. S. investments in biotech, feed, and dairy

Improved food security via U. S. supply chains

MALAYSIA CONCEDES

Must recognise U. S. food-safety systems

Accept U. S. halal certifications via JAKIM

Limited power to impose blanket disease bans

Must align with U. S. chemical residue limits

OVERALL IMPACT: The new framework is expected to deepen Malaysia – U. S. trade relations, modernise agri-food systems, and align regulations with global norms— but it also narrows Malaysia’ s regulatory autonomy in food safety and agricultural biotechnology.

Source: Office of the United States Trade Representative( USTR) & Malaysia – U. S. Agreement on Reciprocal Trade( Annex III).

ART framework extends to digital trade, intellectual property, and security cooperation. Both sides agreed to collaborate on digital connectivity and AI governance.

At the same time, Malaysia committed to aligning with several global treaties, such as the International Convention for the Protection of New Varieties of Plants( UPOV 1991), thereby influencing future plant breeding and biotech innovations.

Trump’ s visit, though unexpected, added weight to discussions on US – ASEAN collaboration, particularly in ensuring secure and transparent trade systems.

BALANCING OPPORTUNITIES AND RISKS

Although the agreement opens the

door for US exporters and investors, industry observers cautioned that Malaysia must maintain a careful balance between trade liberalisation and domestic food self-sufficiency, particularly given its heavy reliance on imported meat and dairy products.

Once ratified, the agreement’ s agricultural provisions will be implemented immediately, with disease-control measures phased in over 180 days to 15 months.

For ASEAN as a bloc, the summit reaffirmed the region’ s growing role in shaping global trade dialogues.

For Malaysia, the new agricultural tariff framework with the US signals a step toward strengthening its global trade footprint while positioning its agrifood sector at the heart of ASEAN’ s sustainable growth agenda.