NOVEMBER 4 — The rule of thumb is one must not read clauses in an agreement in isolation.

There are back-end clauses in an agreement, which go by different names – conflict clauses, savings clauses, compatibility clauses – and which are included in the texts of an agreement.

These clauses can clarify the rights and obligations of the parties to an agreement.

Such clauses are there in the reciprocal trade agreement (RTA) or agreement on reciprocal agreement (ART) between the United States (US) and Malaysia.

Article 7, on Implementation, Enforcement, and Final Provisions, is the final article in the RTA.

Article 7.1, on Recognition of Existing Rights and Obligations, reads as follows:

The Parties recognize their rights and obligations under the WTO [World Trade Organisation] agreements, including provisions of those agreements that reflect a WTO member’s sovereign rights to protect essential security, address unfair trade practices, and pursue other public policy objectives.

Malaysia is a founding member of the WTO and has been a member since its establishment on January 1, 1995.

So, read an agreement wholly – that is, to the full or entire extent. Don’t read its clauses in isolation.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.