Cambodia, US sign 19pc tariff agreement in Malaysia

Cambodia, US sign 19pc tariff agreement in Malaysia

The agreement underscores a shared commitment to strengthen and promote bilateral relations between the two countries.

Prime Minister Hun Manet and US President Donald Trump yesterday officially signed the ‘Agreement on Reciprocal Trade’ aimed at boosting bilateral economic relations between the Kingdom and the world’s largest economy.

The signing ceremony, held on the sidelines of the ASEAN Summit in Kuala Lumpur,was attended by Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), along with diplomats and senior government officials from both countries.

According to Chanthol, the success of the Cambodia-US reciprocal trade agreement reflects the wise vision and sharp leadership of Prime Minister Hun Manet.

He wrote on his official media account that since the beginning, the Premier has been clearly committed to advancing national economic interests by initiating and directing the immediate opening of direct trade negotiations with the US, resulting in the reduction of the tariff rate on Cambodian imports to 19 percent.

Speaking to Khmer Times, Anthony Galliano, Group CEO of Cambodian Investment Management Holdings (CIM), said the reciprocal trade deal marks a decisive moment in the bilateral ties.

“Following the historic signing of the expanded ceasefire agreement in the presence of US President, this trade pact represents consecutive triumphs in a new era of Cambodia-US kinship,” he said.

Galliano, also the Vice President of AmCham, noted that Cambodia has moved ahead of many nations competing to sign trade deals with the US and has avoided potential trade tensions despite recent sanctions on 146 targets by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).

As an American and the chair of Republicans Overseas (Cambodia), I am relishing this proud and epochal moment. I want to commend the Deputy Prime Minister and his team for their tireless efforts.” He added that many countries are striving to finalise trade deals with the US, and it is to Cambodia’s credit to have achieved this ahead of most others. “Cambodia has committed to eliminating tariffs on all US goods exported to Cambodia, while the US will maintain a 19 percent reciprocal tariff on most Cambodian goods but eliminate tariffs on certain products listed under the Potential Tariff Adjustments for Aligned Partners.”

He said the list includes aircraft and parts, certain generic pharmaceuticals and their ingredients, and selected agricultural products and natural resources not produced in sufficient quantities in the US.

“Cambodia has also committed to adopting and implementing a ban on goods produced by forced labour and to strengthening the enforcement of its labour laws.

“Notably, Cambodia will cooperate with the US to restrict transactions with third-party individuals and entities included on the US Department of Commerce Bureau and Security Entity List, as well as the US Department of the Treasury’s Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons (SDN List) and the Non-SDN Consolidated Sanctions List.” He added that this will directly address the recent destructive trend of scam centre growth in the Kingdom — “a pivotal step that could serve as a launch pad for stronger bilateral relations in the future”.

khmertimeskh