Cambodia, South Korea trade up 14 percent

The bilateral trade between Cambodia and South Korea reached $818 million in the first nine months of this year, up 13.8 percent compared with the same period last year, according to a report of the Korea International Trade Association (KITA) issued this week.

The Kingdom imported $507 million worth of items from the East Asia nation, up 10.6 percent year-on-year.

Cambodia mainly exported footwear and other apparel, travel products, beverages, electrical and electronic components, rubber, pharmaceuticals and agricultural products to South Korea.

The Kingdom imported vehicles, electronics, kitchen appliances, beverages, pharmaceuticals and finished plastics and products.

The two countries have ratified the free-trade agreement, which is set to deepen the economic ties.

The Cambodia-South Korea free trade agreement can help boost Cambodian exports of garments, textiles, and footwear to South Korea.

The CKFTA is expected to boost trade between the two countries with South Korea agreeing to remove tariffs on 95.6 percent of products imported from Cambodia, while Cambodia will eliminate duties on 93.8 percent of imported goods.

The CKFTA will come into force in the next 60 days of ratification made by the Korean government in late September this year, said Penn Sovicheat, Under-Secretary of State and spokesman at the Ministry of Commerce.

“The agreement is expected to attract more foreign investment, adding that goods exported to the South Korean market must adhere to high technical quality, both industrial and agricultural products,” Sovicheat told Khmer Times.

The Cambodia-South Korea Free Trade Agreement will provide an opportunity for Cambodia to export duty-free goods on light industrial, agricultural and industrial products, spare parts and accessories, he said.

Lim Heng, vice-president of the Cambodia Chamber of Commerce, said recently that the FTA would not only open up more markets to Cambodian products, but also attract investment for producing and exporting them.

The trade agreement between Cambodia and South Korea is the best opportunity that will enable the governments of the two countries to promote trade exchanges as planned and through this trade promotion, Heng said.

Source: Khmer Times