PM sanguine ahead of second Cambodia-US tariff talks

PM sanguine ahead of second Cambodia-US tariff talks

Prime Minister Hun Manet Friday expressed optimism about the Cambodia-US tariff negotiations terming the second round will yield “positive results”.

Chairing the Plenary Session of the Council of Ministers at the Peace Palace, Mr Hun Manet acknowledged the leadership of Deputy Prime Minister Sun Chanthol, who also serves as the First Vice-Chairman of the Council for the Development of Cambodia (CDC), as well as Commerce Minister Cham Nimul and the broader negotiation team’s efforts in leading the tariff negotiations with the United States, expressing optimism about favourable outcomes in the upcoming round of talks.

“The first round of negotiations was primarily a meeting to present our respective positions and clarify key issues,” he said, adding, “Trade negotiations are inherently complex and require time, as all countries face similar challenges.”

Mr Hun Manet said, “The second round will produce positive results.”

His remarks were included in a press release summarising the outcomes of Friday’s plenary session.

Cambodia is gaining momentum in its efforts to strengthen trade relations with US, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA), said.

Speaking to Khmer Times, Vichet said that Cambodia held productive discussions with representatives from both the Republican and Democratic parties during the first round of trade negotiations.

“Meeting with representatives from both parties in the United States has really helped Cambodia a lot in preparing to introduce trade policies in line with the wishes of the United States,” he said.

Vichet highlighted Cambodia’s non-discriminatory investment laws and its open trade environment as key advantages that could serve as bargaining chips in the ongoing talks.

“Cambodia has investment laws that do not discriminate against investors from any country. We also have the most open investment and trade environment in ASEAN, allowing investors to own 100 percent of the shares,” he explained.

He added that the use of foreign currencies, particularly the US dollar, sets Cambodia apart, especially as some ASEAN countries shift toward the BRICS bloc in an effort to reduce reliance on the dollar.

“This point should be taken into account by the United States,” Vichet noted. “I believe that we still have room and flexibility in negotiating with the United States in the next round.”

The comments come as Cambodia positions itself to enhance bilateral trade ties with Washington, leveraging its investor-friendly policies and dollarized economy to attract more US interest.

According to news release from the Royal Government Spokesperson Unit on May 15, Cambodia and the United States held open and constructive discussions in a spirit of mutual understanding, focusing on ways to strengthen bilateral trade and investment. The two sides also held detailed talks on a draft trade agreement.

The release confirmed that both parties agreed to hold a second round of negotiations in Washington, D.C., during the first week of June 2025.

The draft agreement was developed following the meetings between Chanthol and Sarah Ellerman, Assistant US Trade Representative for Southeast Asia and the Pacific, held in Washington from May 13-15.

The statement also reaffirmed the Royal Government’s commitment under the leadership of Prime Minister Hun Manet to deepening economic cooperation with the United States and fostering a strong, balanced, and mutually beneficial relationship.

In addition, on May 14, Sun Chanthol, Cham Nimul, and Koy Kuong, Cambodia’s Ambassador to the United States and Mexico, paid a courtesy call on US Senator Tammy Duckworth.

Cambodia’s exports to the United States surpassed $3 billion between January-April 2025, marking a 22 percent increase compared to the same period in 2024, according to data released by the General Department of Customs and Excise.

The report highlighted that the United States remained Cambodia’s largest export destination during the first four months of 2025, followed by Vietnam ($1.7 billion), Japan ($523 million), China ($478 million), Canada ($366 million), and Thailand ($327 million).

Total trade between Cambodia and the US reached $3.29 billion during the period, reflecting a year-on-year increase of 22.6 percent. Cambodian exports accounted for $3.20 billion, up 22.3 percent from the previous year. Meanwhile, imports from the US totalled $97.8 million, up 34.8 percent year-on-year.

khmertimeskh