US ambassador slammed for 'impudence' after 'red line' warning to Anwar government

A prominent economist says the US ambassador to Malaysia has crossed diplomatic boundaries when he implied that there would be repercussions if Putrajaya proceeded with its application to join the BRICS bloc following a controversial agreement signed with Washington on Oct 26.

Muhammed Abdul Khalid said the remark by Edgard D Kagan was proof of Washington asserting its right to determine Malaysia's direction based on the reciprocal agreement currently facing public criticism.

"According to this agreement, if we want to enter into another trade deal, we cannot jeopardise US interests. If we want to join BRICS, we have to ask the US.

"Say we want to negotiate an agreement with the EU – we would have to ask the US.

"That's crossing the line, to the point where some say that the country is being insulted and trampled upon as they please," he said in a recent episode of the Tiger Show podcast.

BRICS is an economic bloc originally comprising Brazil, Russia, India and China, to which Malaysia has also applied for membership. Seen as a strong competitor to Western countries such as the US, it would open up a vast market for trading countries such as Malaysia.

Kagan, in welcoming the agreement signed in Kuala Lumpur by Prime Minister Anwar Ibrahim and US President Donald Trump, reportedly said that Malaysia's long-term prosperity remained centered on Western supply chains.

Despite the increasingly vocal opposition to the agreement, seen by many as a violation of Malaysia's sovereignty and right to determine its trade policy, Kagan had said that Washington respected sovereign rights but "sets out some red lines and consequences if violated".

He was also reported as saying that Malaysia's participation in BRICS should not clash with its strong economic ties with the US.

Malaysia's commitments in the agreement with the US include a promise to supply unlimited mineral resources to the US, ease restrictions on American products, and accept US consumer standards for the food and pharmaceutical sectors.

Read: 'Reciprocal' deal? No past PM or trade minister has ever given up sovereignty for a pittance

The agreement also states that if Washington imposes sanctions or tariffs on third countries on grounds of national security, these must be upheld by Malaysia.

Muhammed said the conditions undermined the independence of Malaysia's policies in international relations and the trust of major trading partners such as China.

"China also invests a lot here. We have always been a trading nation, from the time of Melaka until now. We trade with everyone and have never sided with any power.

"But now, how will we remain neutral if we have already taken sides? Our other friend (China) is far bigger, richer, and more influential in this region than the US.

"If China sees us as going to the other side, what will they do? They will lose all trust in us.

"That is why the US ambassador was bold enough to speak with such impertinence and to tell us 'be careful who you choose.'"

Kagan was also criticised in the same podcast by a representative of the Malay Economic Action Council.

Yazid Othman, a senior fellow at the council, said Kagan's "rude" remarks reflected the US's view of Malaysia in relation to itself.

"It is not yet active but such statements reveal the true spirit of the reciprocal agreement," he said.

He said such warnings should not be accepted by any independent nation.

"Since when has our dignity been treated like this? It is our right. Whoever we want to trade with is our right. Even China has never forced us," he said.

Yazid said Malaysia should maintain the balanced diplomatic policy which had allowed the country to cooperate with all parties without bowing to any major power.

"This is the art of diplomacy that we are proud of. Malaysia is able to cooperate with all parties.

"We were once the main voice of the third world. We led the OIC, we mobilised Asean and established close relations with China since the 1970s, when it was still considered communist and despised by the West."