In a significant development for Cambodia’s economy, the country’s trade with members of the Regional Comprehensive Economic Partnership (RCEP) witnessed a substantial increase, reaching over $25 billion within the initial nine months of 2024. This surge, amounting to a 17.1 percent increase compared to the same timeframe the previous year, is a clear indication of the growing economic interactions and enhanced trade dynamics between Cambodia and the RCEP countries. A detailed report issued by the General Department of Customs and Excise on Tuesday has shed light on these evolving economic ties, marking a crucial period of trade activities.
During this period, Cambodia’s trade engagements with its RCEP counterparts represented a significant 61.6 percent of its total trade volume. Specifically, the country’s exports to RCEP nations were valued at $6.76 billion, witnessing a growth of 16.3 percent. Meanwhile, imports from these countries were also on the rise, with an increase of 17.3 percent, totaling $18.78 billion. This balanced growth in both imports and exports highlights Cambodia’s integral role and active participation within the RCEP framework.
The RCEP, which came into effect in 2022, is a landmark trade agreement encompassing 15 Asia-Pacific nations. It includes the ten Association of Southeast Asian Nations (ASEAN) member states alongside five key trading partners: China, Japan, South Korea, Australia, and New Zealand. Among these, China, Vietnam, Thailand, Japan, and Singapore emerge as Cambodia’s principal trading allies, echoing the strategic importance of these relationships for Cambodia’s trade ambitions.
Penn Sovicheat, Secretary of State and spokesperson for the Cambodian Ministry of Commerce, voiced his insights on the pivotal role of the RCEP in fostering Cambodia’s trade growth and attracting foreign direct investments. In his conversation with Xinhua, Sovicheat emphasized the RCEP’s effectiveness as a countermeasure to rising protectionism and the current global demand slump. He accentuated the positive impact of tariff concessions offered under the RCEP agreement, projecting a sustained increase in Cambodia’s exports to these countries.
The advantages stemming from the RCEP agreement for Cambodia are manifold. According to Hoe Ee Khor, the chief economist at the ASEAN+3 Macroeconomic Research Office (AMRO), the reduction of tariffs and non-tariff barriers under the RCEP agreement has significantly smoothed the path for Cambodian goods to penetrate larger markets. This enhanced market access, coupled with competitive pricing brought about by tariff reductions, has particularly benefited key Cambodian export sectors, such as garments and agricultural products. Khor’s written correspondence to Xinhua highlighted these sectors’ potential for leveraging tariff concessions to ensure more competitive positioning in the RCEP markets.
The bolstered trade figures and insightful commentaries underline a promising outlook for Cambodia’s economic engagements under the RCEP framework. With its strategic geographical location and growing economic capabilities, Cambodia is well-placed to harness the benefits of this expansive trade agreement. As the country continues to navigate through the complexities of global trade, the RCEP stands as a powerful facilitator, promising to uplift Cambodia’s economic stature on the international stage further.
Source: Fresh News
