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China and Cambodia signed a free trade agreement after less than a year of negotiations to cut taxes and boost access to the bilateral market.
Chinese Foreign Minister Vuong Nghi and Cambodian Prime Minister Hun Sen and the two countries’ trade ministers today witnessed the signing of a free trade agreement (FTA) broadcast live online. Mr. Vuong arrived in Cambodia yesterday for a visit to convey a sign of the growing close relationship between the two countries.
Under the agreement, which began to be negotiated late last year, the two countries will cut taxes on products in areas such as trade, tourism and agriculture.
Mr. Hun Sen thanked the agreement and said that it has great economic and political importance, while Mr. Vuong Nghi said that the signing of the FTA radiates strong signals and helps Cambodia to solve the challenges caused by the Pandemic of COVID-19.
Chinese Foreign Minister Wang Yi (left) and Cambodian Prime Minister Hun Sen at the Peace Palace in Phnom Penh today. Image: AFP.
“The signing of the agreement demonstrates a stronger relationship between the two countries and marks another important milestone for Cambodia’s relations with China,” Cambodia’s Trade Minister Pan Sorasak said at the meeting. ceremony.
According to Mr. Pan, the agreement that he expects to enter into force early next year “will generate stronger economic partnerships through the level of market access, liberalization of goods, services and increased investment.”
No details on the deal have been provided and it is currently unclear how it will affect the existing China-ASEAN trade deal of which Cambodia is a member.
The deal could be a “boost” for Cambodia, which last year suspended some of its special trade preferences with the European Union (EU), a key market for its exports. The EU move includes reimposing tariffs on certain clothing and footwear, which are critical to Cambodia’s manufacturing sector and economy.
Cambodia, one of the poorest countries in Asia, has been a key ally of China in recent years and is believed to have repeatedly supported Beijing’s stance in exchange for economic assistance. Cambodia denied this accusation, stating that its foreign policy was not influenced by China.
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