What profits do Cambodia get, after RCEP Agreement is signed?

On behalf of Samdech Akka Moha Sena Padei Techo HUN SEN, Prime Minister of the Kingdom of Cambodia, His Excellency Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, attended the 4th Regional Comprehensive Economic Partnership (RCEP) Summit on 15 November 2020 via video conference. The Meeting was attended by the 15 RCEP Leaders and Secretary General of ASEAN to review the implementation progress of the mandate given to the Leaders at the 3rd RCEP Summit and to witness the signing of the RCEP Agreement.

The RCEP Leaders noted and highly appreciated RCEP Ministers and negotiators who have worked tirelessly for the past 8 years and have managed to realize the mandate given at the 3rd RCEP Summit in 2019.

For Cambodia, the Government has delegated “Full Power” to His Excellency PAN Sorasak, Minister of Commerce, to sign the RCEP Agreement. The RCEP Agreement is the historic achievement of the region, which will contribute to the protection and the promotion of globalization, and the support of rules-based multilateral trading system. It is an indispensable prerequisite for the principles of free and fair trade, and an important driving force for sustainable socio-economic development. The RCEP Agreement will be also an important catalyst in contributing to economic growth, improving the livelihoods of people in the region, and helping to restore regional economic development after the Covid-19 Pandemic.

The Signing of this Agreement will form the world’s largest free trade agreement, covering (1) 2.2 billion people, or 30 % of the world population, (2) with combined gross domestic product (GDP) of about 26.2 trillion USD or about 30% of global GDP and (3) approximately 28% of the world trade (based on data in 2019).

Based on the result of the negotiations and the study by the Economic Research Institute for ASEAN and East Asia (ERIA), it is shown that after the conclusion of the RCEP Agreement, per annum, Cambodia is expected to increase 2% on top of the current GDP, 7.3% and 23.4 % in exports and investment, respectively.

On this occasion, the RCEP leaders encouraged member states to expedite the completion of domestic procedures for ratification, so that the Agreement could enter into force in the near future to allow all members to utilize and take maximum advantage of this Agreement.

RCEP leaders reiterated their commitments that the RCEP Agreement remains open for India.

Souce: MOC