Cambodia becomes first country to sign reciprocal trade deal with US at 19% tariff rate, pushes for more reductions

Cambodia becomes first country to sign reciprocal trade deal with US at 19% tariff rate, pushes for more reductions

Sun Chanthol, First Vice President of the Council for the Development of Cambodia (CDC), said that Cambodia was the first country worldwide to sign a reciprocal trade agreement with the United States (US) at a 19 per cent tariff rate on 26 October, during the ASEAN Summit in Kuala Lumpur, Malaysia.

Mr Sun spoke on Thursday (Dec. 4) at the opening ceremony of the “Cambodia Trade Expo 2025”.

“Cambodia was the first country worldwide to sign a reciprocal trade agreement with the US at a 19 per cent tariff rate on 26 October, during the ASEAN Summit in Kuala Lumpur, Malaysia. This agreement has provided clarity and strong confidence for investors exporting to the vast US market,” MR Sun underscored.

He recalled that on 2 April 2025, the US government imposed reciprocal tariffs on Cambodian goods at a rate of 49 per cent, one of the highest rates in the world, due to the Kingdom’s significant trade surplus with the US.

Although Cambodia became the first country in the world to sign a reciprocal trade agreement with the US, the kingdom is continuing its efforts to secure further reductions, particularly for products with strong export potential to the US market.

Mr Sun, in his capacity as the chairman of the working group to coordinate Cambodia–US bilateral trade and investment relations. recognised the critical importance of the US market, the Cambodian government immediately set up a working group to deal with the issues.

He added that through numerous negotiations, the US government gradually reduced the reciprocal tariff rate on goods from Cambodia from 49-36 per cent, and then further down to 19 per cent.

Nevertheless, he explained that Cambodia is continuing to negotiate.

“Last week, I, together with the minister of Commerce, and our working group, held further discussions with the US side via video conference,” he continued.

“Cambodia is striving to secure additional tariff reductions from the US in a number of priority sectors, including garments, textiles, footwear and travel goods. These industries employ a large workforce and provide significant job opportunities for women, thereby helping to raise the living standards of Cambodian people,” Sun Chanthol added.

The growth in these sectors would swiftly generate employment for Cambodian workers who have recently returned from overseas. 

khmertimeskh