Trade ties between Cambodia and the United Arab Emirates have witnessed remarkable growth in recent times, thanks to the Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
Addressing a workshop on ‘The Benefits of the Comprehensive Economic Partnership Agreement (CEPA) between Cambodia and the United Arab Emirates’ on Wednesday, Tekreth Kamrang, Secretary of State of Ministry of Commerce (MoC) said that the main objective of establishing the Cambodia-UAE CEPA is to promote economic and trade integration, especially the opening of the Cambodian market and promoting trade facilitation between the two countries.
The workshop was attended by leaders and experts from relevant ministries and institutions, representatives of special economic zones, representatives of Cambodian and foreign chambers of commerce, the private sector, and academic institutions in Cambodia.
The Cambodia-UAE CEPA came into effect in January 2024.
Kamrang said, “We have created an agreement and the necessary documents, which are intended to benefit the private sector—those willing to enhance trade, investment, and contribute to the overall economy.”
“Since the agreement came into effect in January this year, trade between Cambodia and the UAE increased by 7 percent in the first 10 months of 2024. What’s particularly noteworthy is that Cambodia achieved a trade surplus, exporting more to the UAE than it imports from them—this is exactly the outcome we aim for.”
The UAE is a key market, not only for the Arab region but also as a gateway for exports to Africa. Cambodia aims to expand its export to these regions to further broaden the market reach, Kamrang added.
“I strongly hope that Cambodia’s private sector will actively leverage this free trade agreement to its fullest potential, contributing to the growth of bilateral trade and investment. This aligns with the Pentagonal Strategy Phase 1 of the Royal Government, particularly in promoting economic diversification, enhancing competitiveness, and supporting Cambodia’s transition from least developed country (LDC) status in the near future,” she said.
Tan Monivann, Vice-President of the Cambodia Chamber of Commerce (CCC), said that Cambodia and the United Arab Emirates enjoy strong and ever-growing trade relations. The Comprehensive Economic Partnership Agreement (CEPA) represents a significant step forward in strengthening and expanding cooperation between the two countries, making it even more robust and profound.
“This agreement not only eliminates tariffs and trade barriers but also establishes a new strategic framework that unlocks numerous opportunities for Cambodian businesses, particularly in high-potential sectors such as tourism, infrastructure development, renewable energy, and logistics,” he said.
Monivann further said that this agreement will boost investment flows from the UAE to Cambodia, create new jobs, facilitate the transfer of advanced technology and skills, and drive Cambodia’s industries toward greater innovation and competitiveness on the international stage.
He stated that the CCC is prepared to assist businesses at every step, including connecting with UAE businesses and facilitating trade meetings according to the needs of businesses from both countries.
“I encourage Cambodian businesses to strengthen their competitiveness by improving business excellence, raising standards, increasing efficiency, and enhancing product quality to compete with other countries.
Suy Kokthean, Vice President of the Cambodian Cashew Nut Association (CAC), who also attended the workshop, told Khmer Times that currently, the export of cashew nut to the UAE is still limited in volume. However, he is optimistic that this workshop will help promote Cambodian products more widely, and even association processing plants are focusing on the UAE market as well.
“Currently, the two main markets we are focusing on are China and the UAE, followed by Europe and the United States, as the Chinese market has already been fully penetrated to Europe and the United States. Therefore, these two new markets are where we need to direct our attention,” he said.
Kokthean also confirmed that, regarding the export procedures to the UAE, both the private sector and manufacturers are still unclear, as the agreement was only recently established and users have not yet fully understood the details.
In the first 10 months of 2024, trade between Cambodia and the United Arab Emirates amounted to $75 million, an increase of 7 percent compared to the same period in 2023, while Cambodia exported approximately $55 million and imported approximately $20 million.
Source: Khmer Times
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
