PM lauds FTAs for driving Cambodia’s economic growth
PM lauds FTAs for driving Cambodia’s economic growth
Prime Minister Hun Manet has lauded the significant role of free trade agreements (FTAs) in driving the country’s economic development, citing that the government has been actively pursuing FTAs with various countries and regions.
Presiding over the celebration of the 20th Anniversary of Cambodia’s Accession to the World Trade Organisation (WTO) at Sokha Phnom Penh Hotel in the capital, yesterday, Mr Hun Manet emphasized the benefits of these agreements in expanding market access, attracting foreign investment and fostering trade relations with key partners.
The government has been actively pursuing FTAs with various countries and regions, he said.
“Recognizing the significant advantages of FTAs, the Cambodian government has been actively exploring opportunities to negotiate and implement new agreements with potential partners,” the Prime Minister said.
These agreements have helped to diversify Cambodia’s export markets and reduce its reliance on a single trading partner, he added.
“The government is continuing to strengthen and promote free trade with all development partners based on the approach of strengthening old markets and expanding new markets because to exit Cambodia from among poor countries, it is necessary to strengthen internal products and services and expand external markets,” the Premier added.
As of September 2024, Cambodia has four active bilateral and regional free trade agreements including the Cambodia-China Free Trade Agreement (CCFTA), the Cambodia-Korea Free Trade Agreement (CKFTA), the Cambodia-UAE Comprehensive Economic Partnership Agreement (CEPA), and the Regional Comprehensive Economic Partnership (RCEP).
Mr Hun Manet also asked for diversification of export items in addition to garments and rice, such as travel products, electronics, solar panels, bicycles and other agricultural products such as rubber, cashew nuts, bananas and mangoes.
Additionally, the government has also continued to provide tax incentives to domestic production or export enterprises.
Cambodia became a member of the WTO in 2004. The country has reaped many benefits from expanding its exports to boost strong growth over the past 20 years after joining the World Trade Organization (WTO), said Cham Nimul, Minister of Commerce.
Cambodian goods were also being further diversified in addition to garments, which are the main exports in 2023, she said, adding that the volume of main exports, including garments, is estimated at $7.8 billion, electronics and accessories worth $3.12 billion, rice $1.72 billion, travel goods $1.8 billion, footwear $1.36 billion and bicycles $417 million.
The Kingdom has exported goods worth approximately $19.8 billion during the first three quarters of 2024, up 17 percent from $16.9 billion recorded in the same period last year, according to a report from the General Department of Customs and Excise of Cambodia.
Cambodia’s main export products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles.
