China-Cambodia free trade deal takes effect in January

China-Cambodia free trade deal takes effect in January

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Phnom Penh skyline
  • The free trade agreement (FTA) signed between China and Cambodia will take effect on January 1, 2022
  • The agreement brings the proportion of zero-tariff products in the goods trade between China and Cambodia to more than 90% for both countries

The free trade agreement (FTA) signed between China and Cambodia will take effect on January 1, 2022, according to China’s Ministry of Commerce (MOC).

The agreement, which was officially signed on October 12, 2020, brings the proportion of zero-tariff products in the goods trade between China and the Southeast Asian nation to more than 90% for both countries, the ministry said.

According to the FTA, China will provide tariff-free status to 97.53% of imports from Cambodia, which include clothing, shoes and agricultural products, while Cambodia will exempt tariffs on 90% of Chinese imports, such as textiles as well as mechanical and electrical products, reported China Daily.

In the document, the two countries also agreed to open up their service trade sectors to each other as much as possible.

They also agreed to deepen cooperation in investment, the Belt and Road Initiative, e-commerce, and economic and technical sectors, according to the MOC.

During the first half of the year, Chinese exports to Cambodia added up to US$5.14 billion, up 41.8% from a year ago, while its imports from the nation surged 56.9% to $970 million, the ministry said.

Photo by Maharaja45

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