FTA with EAEU bloc may diversify export market of Cambodia

11 Dec '19

2 min read

Pic: Shutterstock

Cambodian garment and rice industries expect a potential Cambodia- Eurasian Economic Union (EAEU) free trade agreement (FTA) to diversify the country’s export market. Garment Manufacturers Association in Cambodia secretary general Ken Loo said the garment and footwear sectors would gain a new market if an FTA is signed, but it is not clear when that will be signed.

The EAEU is an economic bloc covering Eastern Europe and comprises five countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. The bloc has a combined population of 176 million and posted a gross domestic product of $2.5 trillion in 2016.

The ministry of commerce recently released a report on the results of its assessment of the potential FTA. Speaking at the launch ceremony, minister of commerce Pan Sorasak said the benefits of the FTA noted in the study include industrial diversification and expansion of financial services, transport, digital economy and agricultural services, according to Cambodian media reports.

Prime Minister Hun Sen discussed the agreement with Russian Prime Minister Dmitry Medvedev during the 14th East Asia Summit in Thailand last month.

Ministry of commerce secretary of state Tek Reth Kamrong told reporters in March that EAEU has provided tariff-free access for 46 Cambodia-made products for three years due to the country’s Least Developed Country (LDC) classification.

Though preferential status will last until Cambodia has graduated from its LDC rank, Kamrong said the negotiation for an FTA deal with the bloc is a good initiative.

Fibre2Fashion News Desk (DS)

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