Cambodia-US forge draft agreement on trade talks

Cambodia-US forge draft agreement on trade talks

Cambodia and the United States have engaged in a frank and constructive discussion in an atmosphere of mutual understanding on ways to further strengthening bilateral trade and investment and had in-depth discussions on the draft agreement, according to the Royal Government Spokesperson Unit press release yesterday.

Both sides agreed to hold the second round of negotiations in the first week of June 2025, in Washington, D.C., the release added.

The draft agreement evolved after a meeting between Sun Chanthol, Deputy Prime Minister and First-Vice Chairman of the Council for the Development of Cambodia (CDC), and Sarah Ellerman, Assistant US Trade Representative for Southeast Asia and the Pacific, in Washington DC from May 13-15.

The Royal Government, under the leadership of Prime Minister Hun Manet, reaffirmed its commitment to working closely with the US to build a strong, cooperative and balanced economic partnership, the statement noted.

Earlier on May 14, Chanthol, Cham Nimul, Minister of Commerce (MoC), and Koy Kuong, Cambodian Ambassador to the United States and Mexico, paid a courtesy visit to Tammy Duckworth, a US Senator.

Based on the CDC announcement, the meeting aimed to enhance existing cooperation between Cambodia and the US. During the meeting, both sides explored new opportunities to further strengthen bilateral ties for mutual benefit.

Speaking to Khmer Times, Hong Vanak, an economic researcher at the Royal Academy of Cambodia (RAC), said that the draft agreement signals Cambodia’s high-level delegation has achieved tangible outcomes from its mission to Washington DC.

“However, the final agreement is expected to include additional demands from the Trump Administration, largely tied to both economic and political considerations,” he said.

Vanak underscored that economic issues cannot be separated from political dynamics, noting that the US appears to be leveraging tariff measures to encourage smaller nations like Cambodia to align with its geopolitical interests.

He pointed out that major economies such as China conducted tariff negotiations recently in a third country, Switzerland, a sign of their strong bargaining power.

Vanak said that the postponement of the tariff discussions until next month in all probability reflects substantial requests from the Trump Administration and that Cambodia will need time to assess the implications before making a final decision.

It may be recalled that on April 2, the US imposed tariff on Cambodian exports, citing trade imbalances and regulatory concerns. The move significantly impacted the country’s manufacturing and export sectors.

Later that month, the US reduced the tariff rate to 10 percent for a 90-day negotiation period, and the Royal Government is now working toward a resolution that ensures mutual economic benefit for both nations.

khmertimeskh