Cambodia-Korea Free Trade Agreement to be Prepared to Ink Next Month

Compass Cambodia report, September 4 - According to South Korea's ambassador to Cambodia, a long-awaited trade agreement with Cambodia could be signed next month. The Cambodia-Korea free trade agreement (CKFTA) was announced in February, but the history goes back far further.

During a state visit from South Korean President Moon Jae-in in March 2019, Prime Minister Hun Sen raised the possibility of an agreement. A joint feasibility study was initiated in November of the same year. The pens appear to be prepared to ink the agreement now.

"I expect we will sign the agreement later this year around October. After that I expect we will have more trade between our countries," said South Korean Ambassador Park Heung-kyeong at an event in Phnom Penh on Friday.

According to figures from the Korea International Trade Association, two-way trade was valued at $451 million from January to June, increasing 6.7 percent year to date.

Cambodia exported $159 million worth of products to South Korea, a 1.6 percent decline. Exports from South Korea to the Kingdom increased by 11.9% to $292 million. Garments and textiles, footwear, travel bags, spare parts, electronic equipment, rubber, and agricultural items are among Cambodia's exports to South Korea. Automobiles, electronics, appliances, beverages, pharmaceuticals, and plastic items are all exported from South Korea.

This is Cambodia's second free trade agreement with a country with a more developed economy. The first was an FTA with China, which is officially classified as a developing country despite having the world's second-largest economy.

Source: Compass Cambodia comprehensive arrangement

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