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FILE PHOTO: Chinese State Councilor and Foreign Minister Wang Yi welcomes Cambodian Prime Minister Hun Sen as he arrives at Beijing Capital International Airport in Beijing, China, February 5, 2020 China Daily via REUTERS
PHNOM PENH – China and Cambodia signed a free trade agreement on Monday, drawn up in less than a year and aimed at reducing tariffs and increasing market access between Beijing and one of its most important Asian allies.
The agreement, whose talks began late last year, covers sectors including trade, tourism and agriculture, under which both countries will reduce tariffs on their products.
The signing was attended by China’s top diplomat, State Councilor Wang Yi and Cambodian Prime Minister Hun Sen in a ceremony broadcast online.
“The signing of the agreement signifies even stronger ties between the two countries and marks another key historical milestone for Cambodia-China relations,” Cambodia Trade Minister Pan Sorasak said at the ceremony.
The deal, which he said he expected to enter into force early next year, “would provide stronger economic partnerships through a greater degree of market access, liberalization of goods, services and investment,” he said.
No details were provided on the deal and it was not immediately clear how it would work with the existing trade deal between China and the Association of Southeast Asian Nations (ASEAN), of which Cambodia is a member.
Depending on its terms, the deal could be a boost for Cambodia, which suffered the suspension last year of part of its special trade preferences with the European Union, a key market for its exports, over human rights concerns.
That included reimposing tariffs on certain clothing and footwear, which are critical to manufacturing jobs and its economy.
Cambodia, which is among the poorest countries in Asia, has been a major ally of China in recent years and has been accused of granting it de facto veto power in the ASEAN consensus decision-making process in exchange for economical support.
Cambodia has rejected that and insisted that its foreign policy is not under the influence of China.
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