The United States and Cambodia have reached a new Agreement on Reciprocal Trade aimed at strengthening economic ties between the two countries. The agreement, announced by the White House, is designed to provide exporters from both nations with increased access to each other's markets.
According to the terms of the agreement, Cambodia will eliminate tariffs on all U.S. industrial goods as well as food and agricultural products exported to Cambodia. This commitment has already been implemented by Cambodian authorities.
On its part, the United States will maintain reciprocal tariffs at 19 percent for Cambodian-originating goods, in line with Executive Order 14257 issued earlier this year. Additionally, certain products listed in Annex III of Executive Order 14346 will be eligible for a zero percent tariff rate.
Both countries have agreed to address non-tariff barriers affecting bilateral trade. These measures include simplifying import licensing procedures, streamlining regulatory requirements and approvals, recognizing U.S. sanitary and phytosanitary standards for food and agricultural products, and increasing enforcement against markets known for counterfeiting and piracy.
Efforts will also be made to prevent obstacles facing U.S. agricultural products entering the Cambodian market. This includes ensuring recognition of certificates issued by U.S. regulatory authorities.
Cambodia has pledged to protect internationally recognized labor rights by adopting prohibitions on importing goods produced through forced or compulsory labor and enhancing enforcement of its labor laws.
Environmental protection is another focus area under the agreement. Cambodia commits to maintaining high environmental standards and enforcing relevant laws—addressing issues such as illegal logging, fisheries subsidies, illegal fishing, and wildlife trafficking.
Other aspects covered in the agreement include digital trade, services, investment protection, intellectual property rights, customs procedures, good regulatory practices, and oversight of state-owned enterprises' activities that could distort competition.
Both governments have also committed to strengthening cooperation on economic and national security matters. This includes working together on supply chain resilience initiatives and coordinating actions related to duty evasion, investment security, and export controls.
A commercial partnership was also highlighted: Air Cambodia plans to collaborate with Boeing in developing Cambodia’s aviation sector.
The White House noted that “the United States may positively consider the effect that the Agreement has on national security, including taking the Agreement into consideration when taking trade action under section 232 of the Trade Expansion Act of 1962.”
Formal domestic processes are expected over the coming weeks before the agreement comes into force.