U.S. Trade Agreements in Southeast Asia Reshape Regional Supply Chains
New U.S. trade agreements with Malaysia and Cambodia include provisions allowing Washington to cancel deals if either country signs competing pacts that threaten American interests. Analysts suggest these clauses force Southeast Asian nations to choose between U.S. and Chinese trade ties, potentially disrupting regional supply chains.
The agreements grant the U.S. unilateral termination rights and bind Malaysia to enforce American sanctions. Economists warn exporters reliant on Chinese inputs may face higher compliance costs or exclusion from the U.S. market, potentially altering investment patterns across 'factory Asia'.
"This is the U.S. leveraging its market access to reshape decades of Asian manufacturing networks," said IMD Business School's Simon Evenett. The strategic MOVE could redefine trade diplomacy in a region long caught between competing superpowers.
