Cambodia’s exports under various trade preference schemes reached an impressive $13.27 billion in the first half of this year, accounting for 88 percent of the country’s total exports of $14.92 billion, a report from the Ministry of Commerce (MoC) showed on Monday.
The report highlighted the critical role that trade preferences such as the Generalised System of Preferences (GSP), Free Trade Agreements (FTAs), the Regional Comprehensive Economic Partnership (RCEP), and Most Favoured Nation (MFN) status, have played important roles in Cambodia’s economic development.
According to the MoC, a significant portion is attributed to preferential trade schemes, underscoring the government’s strategic focus on leveraging these agreements to bolster the national economy.
Cambodia’s free trade agreements with China, Korea and RCEP have significantly contributed to the rise in Cambodia’s trade, Penn Sovicheat, Secretary of State of the Ministry of Commerce, said.
Speaking with Khmer Times, Sovicheat said, “Free trade agreements with China, Korea, RCEP, and trade preferences in the US and EU have given a significant boost to Cambodia’s trade growth.”
According to the report, the markets Cambodian products exported to under the FTA, MFN, and GSP are the United States, the United Kingdom, the European Union, Canada, ASEAN countries, Japan, China, Australia, India, New Zealand, South Korea, and Saudi Arabia.
Cambodia’s main export products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles.
Cambodia’s major imports include medicines and supplements, consumables and food and beverages.
The report, however, did not disclose the figures in the same period last year for comparison.
The free trade agreements and trade preference schemes are key factors in boosting the country’s exports and attract investment due to the country’s huge markets, said Lim Heng, Vice-President of the Cambodia Chamber of Commerce.
“The more free-trade preferences, the more markets we have for our products to export. The government’s push for new FTAs is a welcome and necessary step to ensure our businesses can continue to thrive and expand into new markets,” Heng said.
This proactive approach is crucial as Cambodia prepares for its graduation from Least Developed Country (LDC) status, a move that will eventually lead to the loss of some preferential trade benefits.
The Ministry of Commerce has been working to establish free trade agreements with other partner countries, expanding new markets for boosting product exports to international markets, Sovicheat added.
