Cambodia's exports to China rise as FTA takes effect

05 Feb '22

2 min read

Pic: Shutterstock

Cambodian exports to China rose by 39 per cent to $1,510 million last year as both sides implemented their new free trade agreement (FTA). Figures from the Cambodian ministry of commerce showed the bilateral trade reached $11,144 million last year, a year-on-year (YoY) rise of 37.28 per cent. Imports from China were valued at $9,633 million, a 37 per cent YoY rise.

Ministry spokesman Penn Sovicheat said the bilateral trade is expected to increase due to the FTA.

The agreement, officially signed on October 12, 2020, brings the proportion of zero-tariff products in the goods trade between China and the Southeast Asian nation to more than 90 per cent for both countries.

The Cambodia-China FTA extends across a wide range of sectors, including trade, tourism, investment, transportation, and agriculture.

China will provide duty-free status to some 98 per cent of imports from Cambodia whereas Cambodia has agreed to exemptions of up to 90 per cent of its imports from China, according to a Cambodian newspaper report.

Through the FTA, Cambodia hopes to increase bilateral trade with China to $10 billion by 2023, up from $8 billion in 2020. This is a timely development for Cambodia as businesses continue to reel from the European Union’s (EU) partial withdrawal of the Everything but Arms (EBA) status in 2020.

Lim Heng, vice president of the Cambodia Chamber of Commerce, said the agricultural products are a priority for exports to China, meaning that upgrading and enhancing the quality and reply to standard requirements are needed to be addressed.

Cambodia exports mostly agricultural products including milled rice, mangoes and cassava to China. Imports from China are primarily industrial products and raw materials for the garment industry and building materials.

Fibre2Fashion News Desk (DS)

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