Although Cambodia was the very first country in the world to sign a reciprocal trade agreement with the US, with tariff rate of 19%, the Kingdom is still continuing its efforts to negotiate further reductions, especially for goods with strong export potential to the US market.
Deputy Prime Minister Sun Chanthol, first vice-president of the Council for the Development of Cambodia (CDC), explained the process as he addressed the opening ceremony of the “Cambodia Trade Expo 2025” on the morning of December 4.
He recalled that on April 2, the US government imposed reciprocal tariffs on Cambodian goods at a rate of 49%, one of the highest rates in the world, due to the Kingdom’s significant trade surplus with the US.
Chanthol noted continued that, recognising the importance of the US market, the Cambodian government immediately established a working group for coordinating Cambodia–US bilateral trade and investment relations, with himself as chairman.
He added that through numerous negotiations, the US government gradually reduced the reciprocal tariff rate on goods from Cambodia — from 49% to 36%, and then further down to 19%.
“Cambodia was the first country in the world to sign a reciprocal trade agreement with the US at a 19% tariff rate on October 26, during the ASEAN Summit in Kuala Lumpur, Malaysia. This agreement provided clarity and strong confidence for investors exporting products to the large US market,” he said.
Nevertheless, he explained that Cambodia is continuing to negotiate.
“I myself, together with Her Excellency (the Minister of Commerce) and the working group, held follow-up discussions with the US side last week, via video conference,” he said.
“Efforts are continuing to negotiate for further tariff reductions with the US on several priority sectors, including garments, textiles, footwear and travel goods. These sectors support a large labour force and especially provide many job opportunities for women, helping to improve the living standards of Cambodian people,” he added.
According to Chanthol, growth in these sectors will quickly create jobs for the Cambodian workers who have recently returned from working abroad.
