Cambodia-UK trade down 6.2% in January

Cambodia-UK trade down 6.2% in January

Despite the slower start to the year, full-year figures from 2025 paint a more optimistic picture, with the total trade between the two nations exceeding $1.06 billion.

Bilateral trade between Cambodia and the United Kingdom recorded a modest slowdown at the start of 2026, though officials and analysts say the broader trajectory of economic ties between the two countries remains positive.

A report released by Cambodia’s General Department of Customs and Excise (GDCE) shows that two-way trade reached more than $89 million in January 2026, representing a 6.2 percent decline compared to the same month last year. The dip was largely driven by a fall in Cambodian exports, while imports from the UK rose significantly.

According to the GDCE, Cambodia exported goods worth over $84 million to the UK in January, down 7.8 percent year-on-year. Meanwhile, imports from the UK increased by 28 percent compared to January 2025, reaching $5.5 million.

Despite the slower start to the year, full-year figures from 2025 paint a more optimistic picture. Data from Cambodia’s Ministry of Commerce (MoC) indicate that total trade between the two nations exceeded $1.06 billion in 2025, marking a 5.68 percent increase from 2024.

Of that total, Cambodian exports to the UK accounted for approximately $1 billion, rising 5.8 percent year-on-year. Imports from the UK totalled $54 million, up 2.17 percent. Cambodia’s main exports to the British market include garments, footwear, travel goods, bicycles and agricultural products, while imports typically consist of machinery, pharmaceuticals and specialised manufactured goods.

The strengthening commercial relationship was highlighted late last month when the MoC, in collaboration with the British Embassy in Cambodia, convened the 3rd Cambodia-UK Joint Trade and Investment Forum (JTIF) in Phnom Penh. Held under the theme “Progressive Partnerships in a Shifting Global Landscape,” the forum brought together government officials, business leaders, and representatives from industry associations from both sides.

The event was presided over by Commerce Minister Cham Nimul and British Ambassador to Cambodia Dominic Williams. Participants discussed trade diversification, investment promotion, and collaboration in emerging sectors such as green energy, digital services and high-value manufacturing.

Nimul described the JTIF as a “flagship platform” for advancing bilateral success. She emphasised that the forum’s outcomes would help generate new opportunities as both countries navigate an evolving global economic landscape, particularly amid shifting supply chains and growing demand for sustainable production.

Rhiannon Harries, Deputy Trade Commissioner for Asia Pacific (Southeast Asia), said the forum provides an important mechanism to strengthen economic ties and address shared challenges. She noted that the UK maintains a £57 billion (approximately $77.32 billion) annual trade relationship with Southeast Asia, underlining its commitment as ASEAN’s newest Dialogue Partner.

Commenting on the January figures, socio-economic researcher Chey Tech told Khmer Times that drawing conclusions from a single month’s data could be misleading. He said short-term fluctuations are often influenced by shipment schedules, transport timelines, tax payments and currency movements.

Tech added that appreciation or depreciation of the British pound against the US dollar can significantly affect recorded trade values. “A one-month assessment cannot accurately reflect long-term trade trends,” he said, pointing out that overall trade expanded in 2025 compared to 2024.

Looking ahead, Tech expressed confidence that bilateral trade in 2026 could surpass last year’s performance, particularly as the UK continues to offer preferential tariff schemes for least developed countries. Since June 2023, the UK has granted zero-percent tariff preferences on certain imports from LDCs, including textiles, garments, travel goods and electrical products, with the scheme set to run until 2032.

These preferences, he said, are expected to underpin sustained growth in Cambodia’s exports and deepen trade ties in the years to come.

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