The U.S. has embedded loyalty tests in a new trade agreement in Southeast Asia.

Be Warned! The U.S. Forces "Poison Pill" Clauses to Test ASEAN Loyalty

While concluding trade agreements with other countries, the U.S. once again resorts to its old tactics by forcibly embedding "poison pill" clauses.

According to a report by the Financial Times on November 6 local time, the Trump administration included such "poison pill" clauses in the new trade agreement signed with Malaysia and Cambodia, two Southeast Asian countries last week, and warned that if either country signs a competitive agreement that harms "the fundamental interests of the United States" or "poses a substantial threat to U.S. security," the U.S. can terminate the agreement based on this clause.

Trade experts have stated that these extremely rare and far-reaching clauses essentially serve as a "loyalty test" for small countries with close trade relations with China, and could potentially reshape the landscape of future U.S. trade negotiations in Southeast Asia and other regions. Some analysts have openly stated that these "poison pill" clauses are another blow to multilateralism, but Southeast Asian countries have no leverage to refuse U.S. demands.

The Financial Times noted that Southeast Asian countries have long maintained a delicate balance between the U.S. and China, and the emergence of "poison pill" clauses has greatly increased the difficulty for ASEAN's smaller countries to maintain this balance between the two powers.

Original article: www.toutiao.com/article/1848045304559817/

Statement: This article represents the views of the author himself.