ASEAN Plus Three countries boost trade, investment ties

Ten member states of Southeast Asian Nations (ASEAN), Japan, China, and Korea have boosted cooperation in trade and investment by taking advantage of the existing free trade agreements.

The group discussed the trade potential at the 25th ASEAN Plus Three (Japan-China-RoK) Summit, held in Phnom Penh on Saturday.

The member states stressed on the importance of investment, market openness, and ensuring the inflow of supply chains between the ASEAN bloc and China, Korea and Japan.

“They stressed the important relations of investment, market openness, and ensuring the inflow of supply chains between ASEAN and the Plus Three countries to allow concerned parties to take advantage of the free trade agreements,” said Kung Phoak, Secretary of State at the Ministry of Foreign Affairs and International Cooperation and Spokesperson for the 40th and 41st ASEAN Summits and Related Summits.

ASEAN countries, China, Korea, and Japan are members of the Regional Economic Comprehensive Partnership (RCEP). The RCEP free trade agreement entered into force on January 1, 2022.

The regional trade pact comprises 15 Asia-Pacific countries including 10 member states of 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.

Being the world’s largest trade bloc, the RCEP trade deal has a combined GDP of $26.2 trillion, representing around 30 percent of global GDP, 28 percent of global trade, and 32.5 percent of global investment.

Cambodia has two bilateral free trade agreements with China and Korea.

The RCEP pact has contributed to the country’s export growth, Penn Sovicheat, Under-Secretary of State at the Ministry of Commerce, said. The government is working towards the establishment of negotiation on a free trade agreement with Japan, he told Khmer Times recently.

“Exporting products to markets such as Korea and Japan, which require quality products, will promote the reputation of Cambodia-made products, meaning that Cambodian products meet the requirements in other countries,” Sovicheat added.

 Source: Khmer Times