America Inks Agreements with Thailand, Cambodia, and Malaysia; Advances Framework with China

The United States reached a “framework agreement” with China on Sunday with the aim of avoiding the imposition of additional tariffs on 100% of Chinese products. The Asian giant has diversified the destination of its fashion exports, which had the U.S. as its main customer, precisely because of the tariffs: up to October, Chinese fashion exports to the U.S. have fallen by 20%.

“I think we have reached a meaningful framework for the two leaders to meet next Thursday and to avoid the tariffs,“ said Scott Bessent, U.S. Treasury Secretary, in line with the statements made by Li Chengdu.Li Chenggang, China’s international trade representative, said there was a “preliminary consensus” between the two countries on trade, according to local media.

On the first stop of a diplomatic tour of Asia, Donald Trump arrived yesterday in Malaysia, where he is scheduled to meet Chinese President Xi Jimping later this week in South Korea.

U.S. to foster partnership between U.S. companies and Thailand, Cambodia and Malaysia through agreement

The United States has also signed bilateral and trade agreements with Thailand, Cambodia and Malaysia, which include tariff trade pacts providing for tariffs of 19% for products from these Asian countries, and near total exemption for U.S. export products.

“The United States and Thailand will work together to address Thailand’s non-tariff barriers affecting bilateral trade,“ explains the bilateral declaration signed with the Asian country, identical to the one published on Cambodia and Malaysia, which provides for reliefs in the tariff war declared by the US president.

The statement adds the explanation that in the coming weeks both parties “will negotiate and finalize the Reciprocal Trade Agreement and will process the internal formalities for the Agreement to enter into force”. The United States has also signed a similar agreement with Vietnam.

The documents signed with Thailand, Malaysia and Cambodia reflect the willingness of the parties to “foster partnerships between U.S. companies” and those countries and boost trade and investment to “expand the integration of the three countries into secure and reliable global supply chains” for “critical” minerals.

Specifically, it proposes to “strengthen trade and investment in critical mineral supply chains” to “secure the supply of critical minerals globally,“ according to the text released by the White House.