Economists are optimistic that Cambodia will see positive outcomes from upcoming bilateral trade negotiations with the US, set to take place in Washington, D.C., on May 14–15.
On the morning of May 2, the Office of the Spokesperson of the Royal Government of Cambodia issued a press release stating that Sun Chanthol Deputy Prime Minister and first-vice president of the Council for the Development of Cambodia (CDC), and Cham Nimul, Minister of Commerce, led the AD Hoc Cambodia- U.S Bilateral Relations Coordination Working Group in a virtual conference with the US Trade Representative (USTR), led by Sarah Ellerman, assistant USTR for Southeast Asia and the Pacific.
“The Royal Government, led by Prime Minister Hun Manet will continue to cooperate closely with the US to achieve a mutually beneficial trade and investment relationship,” said a spokesperson unit press release.
Lor Vichet, an economist and vice-president of the Cambodia Chinese Commerce Association (CCCA), expressed confidence that the government is demonstrating a strong commitment to promoting trade cooperation with the US — through efforts such as increasing imports from the US and a commitment to reducing certain import tariffs.
He added that if the negotiations yield positive results, Cambodian-made goods will gain broader access to the US market. At present, Cambodia’s production output continues to rise, particularly in the apparel, footwear, travel bags, bicycles, vehicle tires and some agricultural products.
Vichet noted that for smoother negotiations, Cambodia must also be committed to increasing imports of US products to help create a more favourable environment for trade discussions.
“Because Cambodia has very competitive labour costs, if the US eases import tariffs on our products, more Cambodian goods will enter the American market. However, Cambodia also needs to make purchases of US-made goods,” he told The Post on May 2.
“For the negotiations to bear fruit, Cambodia should offer trade terms such as committing to increase imports from the US from around $300 million per year to over $1 billion in the future. Additionally, the Cambodian government could consider the possibility of reducing import tariffs on US goods to zero in order to make the talks more attractive to the US,” he added.
According to the General Department of Customs and Excise of Cambodia (GDCE), in 2024, trade between Cambodia and the US reached $10.18 billion, a rise of 11.2%. Of this, Cambodian exports totalled $9.9 billion (up 11.4%), while US imports amounted to $264.14 million.
The US administration, led by President Donald Trump, announced a new round of “reciprocal” tariffs on April 3. However, their implementation was delayed for 90 days, ostensibly to allow for negotiations.
The US imposed a 49% import tariff rate on Cambodian goods — the highest of any ASEAN countries. The rate was calculated on the 2024 bilateral trade imbalance between Cambodia and the US.