Cambodia and Korea have announced the start of formal negotiations of the Bilateral FTA

On Thursday, July 9, 2020, at the Ministry of Commerce, HE Pan Sorasak, Minister of Commerce, led the Cambodian delegation to the Video Conference with Lok Chumteav YOO Myung-Hee, Minister of Commerce of Korea, to announce the start of the formal negotiations of the Cambodia-Korea Free Trade Agreement.

Ahead of today's official announcement,the two countries' teams have met several times through video conference and through a series of stages include: 1) A holistic study on the feasibility of establishing a bilateral free trade agreement, 2) the preparation of the overall principles of negotiations, and 3) Requesting authorization from the governments of both countries.

The study shows that the Cambodia-Korea Free Trade Agreement could serve as a catalyst to strengthen economic and political ties, increase trade volume and investment, increase GDP, benefit to consumers as well as strengthening cooperation between the two countries' institutions.

Two-way trade turnover in 2019 was US $ 1,032 million, an increase of 254% compared to the previous year, of US $ 291 million.Trade between the two countries has averaged increase about 15% per year over the last 10 years.

The two countries' trade ministers expressed their optimistic and committed stance towards achieving the bilateral free trade agreement, which expressed full support of a multilateral trading system based on legal principles and especially to help the economy recover quickly after the Covid-19 crisis.

Ministers also discussed and exchanged views on the WTO situation and progress and shared their views on continuing to support the WTO and the multilateral trading system which has played an important role in assisting both the least developed and developing member countries, including Cambodia.

At the same time, the negotiations on the establishment of the Free Trade Agreement which the Ministry of Commerce has been implementing are in line with the "Political Program of the Royal Government of the Sixth Legislature of the National Assembly" and "Phase IV Strategy" under the wise leadership. Cambodia's Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen seeks to diversify Cambodia's markets and exports.(Source from MOC)