Cambodia's exports to RCEP countries up 12% in first five months of 2024

Cambodia exported US$3.97 billion worth of goods to RCEP - Regional Comprehensive Economic Partnership - countries in the first five months of 2024, up 12% from US$3.57 billion in the same period of 2023, according to a report by the Ministry of Commerce.

The country’s RCEP exports accounted for 39% of the Kingdom’s total trade of US$10.18 billion

Two-way trade between Cambodia and RCEP countries increased by 14.20% to US$14.17 billion. The Kingdom’s RCEP trade accounted for 65.57% of the country’s international trade of US$21.61 billion.

The RCEP free trade agreement allows Cambodia to enjoys preferential tariffs on many of its exports, including agricultural, manufactured and industrial goods. The Kingdom also benefits from the agreement, including the transfer of technology, knowledge, skills and new capabilities through foreign direct investment and the creation of new jobs.

RCEP has given a big boost to Cambodia’s exports, contributing to the country’s economic development, said H. E. Sok Siphana, senior minister in charge of international and multilateral trade and economic relations:

"RCEP has given Cambodia’s products great market access and is the source of the country’s sustainable economic development in the coming years.”

The RCEP was conceived at the 2011 ASEAN Summit in Bali, Indonesia, while negotiations were formally launched at the 2012 ASEAN Summit in Cambodia.India, which participated in the initial negotiations but later decided to opt out, has been invited to join the bloc at any time. Any other country or separate customs territory in the region can join the pact from 1 July 2023.The treaty was formally signed on 15 November 2020 at the virtual ASEAN summit hosted by Vietnam. For the first ten ratifying countries, the trade pact came into force on 1 January 2022.

RCEP includes a mix of high-, middle- and low-income countries. It is expected to eliminate around 90% of import tariffs between its signatories within 20 years of its entry into force, and to establish common rules on e-commerce, trade and intellectual property. Several analysts predicted that it would bring significant economic benefits to the signatory countries, boost post-pandemic economic recovery, and "shift the economic centre of gravity back to Asia, with China poised to take the lead in writing trade rules for the region", leaving the United States behind in the region's economic and political affairs.

The regional trade pact covers today 15 Asia-Pacific countries, including the 10 members of the Association of Southeast Asian Nations (ASEAN) - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.