Cambodia, US to begin trade talks in Washington on May 14-15

Cambodia, US to begin trade talks in Washington on May 14-15

After holding virtual preparatory talks early this month, Cambodia and the United States have agreed to engage in a new round of trade negotiations set to take place on May 14-15 in Washington, D.C., said the Royal Government Spokesperson Unit. Both sides will assess progress and opportunities to deepen economic ties.

According to a press release by the Royal Government Spokesperson Unit on Friday, the preparatory meeting was held virtually on May 2 between senior officials from the two countries. Deputy Prime Minister Sun Chanthol, who also serves as First Vice Chairman of the Council for the Development of Cambodia (CDC), and Minister of Commerce Cham Nimul led the Cambodian delegation, while Assistant US Trade Representative for Southeast Asia and the Pacific Sarah Ellerman headed the US side.

The May 2 discussions centered on the status of ongoing work and coordination efforts ahead of the formal negotiations. The upcoming meeting in Washington is expected to further solidify the foundation for stronger trade and investment cooperation between the two countries.

“The Government of the Kingdom of Cambodia, under the leadership of Prime Minister Hun Manet, remains committed to working closely with the United States to build a mutually beneficial economic partnership,” read the release.

The latest round of bilateral engagement highlights Cambodia’s ongoing push to attract investment and expand market access as part of its broader economic diplomacy strategy.

As Cambodia and the United States prepare for potential trade negotiations, a senior representative from the Cambodia Chinese Commerce Association (CCCA) has suggested that increasing imports of American goods could pave the way for more favourable trade terms.

Lor Vichet, Vice President of the CCCA, told Khmer Times that Cambodia should consider setting a clear target such as importing $1 billion worth of goods from the United States annually to help build a more constructive negotiating environment.

“It appears that the United States wants Cambodia to increase its imports of American goods,” Vichet said. “If Cambodia does so, it could help create a more favourable environment for trade negotiations between the two countries.”

He went on to add that this move could serve as a strategic exchange for discussions aimed at reducing tariffs on Cambodian exports to the US market. “Cambodia could set and raise its import quota from the US to $1 billion per year. If the negotiations are successfully concluded, Cambodia’s exports to the US market could expand significantly,” he said.

Vichet also proposed that the Royal Government of Cambodia study the feasibility of applying a zero-percent tariff on American goods as part of a broader trade strategy. He emphasized that Cambodia should use the upcoming talks to expand market access and diversify its export base beyond garments, footwear, and travel goods (GFT).

“Cambodia should capitalize on the upcoming bilateral trade negotiations with the United States to maximize its potential, diversify its export product lines, and create a more favourable investment environment for American companies doing business in Cambodia,” he said.

Vichet described the proposal as a pragmatic approach that could ensure “both parties come out of the negotiating table with fruitful outcomes based on win-win principles, ensuring mutual benefits and mutual interests are protected and preserved.”

On May 1, 2025, Prime Minister Hun Manet reaffirmed Cambodia’s readiness to send a top-level official to the United States for tariff negotiations as soon as it receives a signal from the White House.

Speaking in Sihanoukville during International Labour Day celebrations, he acknowledged the complexity of such negotiations and the broader economic implications for Cambodia.

Mr Hun Manet warned that rising US tariffs could severely disrupt exports, production chains, and employment, especially in key sectors like shipping through the Sihanoukville Autonomous Port.

Citing Japan’s struggle to resolve a 24 percent US tariff despite its close alliance with Washington, the Premier underscored the challenges smaller economies like Cambodia face in securing favourable trade terms.

In a show of seriousness, Mr Hun Manet highlighted that Deputy Prime Minister Sun Chanthol, who will lead the negotiation team, has already begun groundwork and even skipped Khmer New Year festivities to meet with the US trade representative.

Cambodia’s decision to appoint a Deputy Prime Minister to head the talks—an unusually high rank compared to many countries—demonstrates its determination to achieve a strong outcome for the nation.

It is worth noting that on April 3, 2018, under President Donald Trump’s sweeping tariff policy, Cambodia was the hardest-hit ASEAN country, facing a steep 49 percent US tariff due to alleged unfair trade practices.

khmertimeskh