ADVANTAGE
2023/05/04
Preferential trade status
◎ In 2003, Cambodia was approved accession to WTO. Since Cambodia is categorized as least developed country, it has not encounter the dual anti-dumping and other trade barriers from developed countries yet. 28 developed countries including the USA, Japan and European countries offer Cambodia with Generalized System of Preferences(GSP). For textile and clothing products imported from Cambodia, the USA offers loose quota and reduction of tariffs, and Canada provides preferences such as tariff reductions as well.
◎ In 1st January, 2011, the EU announced to start the new GSP, and will
continue to offer the most preferential treatment to 49 least developed countries including Cambodia. The new GSP relax regulations to Cambodia once more, and one of the most important conditions is that the material sources no longer be restricted, the clothing products which produced in Cambodia and the fabric from different countries can enjoy tariff-free preferential to access to the EU market.
◎ Till 2010, zero tariff trade can be realized among 10 members of ASEAN, which means a huge ASEAN market with 600 million population has opened to Cambodia. In addition, the ASEAN will set up a FTA with South Korea, Japan, India, New Zealand and Australia, and the investor will also have the ASEAN 10+6 zero tariff of big market if invest in Cambodia.