In the first eleven months of 2023, Cambodia exported goods worth $8,144 million to the US, a decrease of 0.89 percent compared to the same period in 2022, according to a report from the Ministry of Commerce. Despite this slight decline, shipments to the US still accounted for 38.25 percent of Cambodia’s total export volume of $21,292 million, solidifying the US as the country’s top market for its products.
Meanwhile, imports from the US fell by 23.97 percent, amounting to $223 million. It is worth noting that although Cambodia’s trade scheme, the Generalized System of Preference (GSP), expired in 2020, the country continues to export products such as garments, footwear, and light manufacturing goods to the US market under the Most Favored Nation (MFN) treatment.
Cambodia’s primary exports to the US include apparel, clothing accessories, leather goods, travel items, handbags, electrical machinery and equipment, and footwear. On the other hand, the country imports vehicles, machinery and mechanical appliances, medical instruments, and pharmaceutical products from the US.
The major markets for Cambodia’s garment, footwear, and travel (GTF) goods are currently Europe, the United States, and Canada. However, exports to these markets have faced challenges due to the ongoing Ukraine conflict and inflation, resulting in a decline, as reported by the Cambodian Footwear Association.
Despite these challenges, Hor Sereyvath, chairman of the Innovations and Development Investors Association, emphasized that the US market remains a significant export destination for Cambodian products. To leverage this potential, Cambodian entrepreneurs and producers are being encouraged to explore partnerships, gain knowledge of legal compliance and export procedures, and understand the opportunities and challenges associated with exporting products from Cambodia to the US.
The trade preferences provided by both the GSP and MFN have played a significant role in boosting Cambodia’s exports to the US, constituting the largest share of the country’s total exports, according to Penn Sovicheat, Secretary of State at the Ministry of Commerce. Sovicheat further added that regardless of whether the GSP scheme is renewed or not, the US market will continue to hold great potential as a major export destination for Cambodian products.
Source: Khmer Times
