At its Friday meeting on the study and formulation on the good use of trade agreements in promoting exports, the Ministry of Commerce announced research is currently under way on products to be imported and exported under the Cambodia China Free Trade Agreement (CC-FTA). One of the potential sub-sectors deemed promising for export to China is woolen garments.
Secretary of State of the Ministry of Commerce (MoC) Seang Thay said that in-depth analysis on how that particular export market can best be fully realised is underway.
The government set up a special working group last year to conduct research using SWOT (strengths, weaknesses, opportunities and threats) analysis as to which commodities would have export potential under the free trade agreement.
Seang Thay said the ministry has conducted its research on the potential of enhancing the export opportunities in nine areas. These are clothing, footwear, special economic zones, light industry, food processing, fisheries, rice, cassava and natural rubber.
The research focused on promoting exports to China, how to enter the Chinese market and conditions including the global trade volume of related products and Cambodia’s main export markets.
The ministry also studied import tariffs that are beneficial to Cambodia and non-tariff barriers imposed by major trading partners on Cambodia in accordance with the multilateral trade agreement (MFN) mechanism under the China-ASEAN Free Trade Agreement (ACFTA).
Cambodia and China signed the CC-FTA on Oct 12 last year. It was the first bilateral free trade agreement signed by Cambodia and the first free trade agreement signed between China and an ASEAN member state.
Since the CCFTA came into effect, Cambodia has listed 340 additional commodities for export to China. These are in addition to the 10,000 tariff-free products already listed via the ACFTA.
Those 340 products include peppers, chilis, vegetables, fruit, fish, meat (including processed), grains, seafood and a variety of canned products, said the MoC.
According to the MoC, 95 percent of the 340 commodities added by the CCFTA, ninety-five will be untaxed. Taxes will be lowered on the remaining 5 percent for a period of at least 10 years.
- Tags: CC-FTA