Cambodia and South Korea start 4th round of free trade talks

Cambodia began the fourth round of free trade talks with South Korea this week, as the Kingdom continues to embark on expanding regional integration with an aim to diversifying export opportunities.

The latest round of negotiations follows the signing of a historic bilateral free trade agreement (FTA) with China and the successful conclusion of the Regional Comprehensive Economic Partnership (RCEP) multilateral mega-deal signed by 15 Asia-Pacific countries on Sunday.

Cambodian Prime Minister Hun Sen (R) meets South Korea’s President Moon Jae-in at the Peace Palace in Phnom Penh on March 15, 2019. AFP

The talk will outline general rules for the agreement in the areas of customs clearance, market access as well as a range of other components. A free trade deal with Cambodia would provide South Korean companies with wider access in the rapidly growing Southeast Asian market.

The current decline in exports and imports between the two countries is nothing unexpected considering the impact of the pandemic.The products that Cambodia expects to see exports increase as a result of concluding an FTA with South Korea will likely be agricultural products, processed agricultural products, live animals, textiles, clothing and accessories, among others.

Cambodia and South Korea aim to have a deal agreed to before next year. Both countries are looking to secure trade between the two countries, trade that grew to a record $1 billion in 2019. Over the same period, exports from South Korea to Cambodia rose by 5.5 percent to $697 million, making Cambodia the 58th-largest export destination for South Korea. 

Currently, South Korea exports mostly cargo trucks, drinks and textiles to Cambodia, while the Kingdom primarily exports clothes and shoes in the other direction.

Compass Real Estate

editor:Chea