Consideration of China-Cambodia FTA

The China-Cambodia Free Trade Agreement was signed in October 2020 and officially came into effect on January 1, 2022. This is the first bilateral FTA signed between China and an LDC, setting a good example of mutually beneficial cooperation with LDCs for China.

The content of the agreement fully reflects the high standard and inclusiveness. First, the agreement has achieved a high level of tariff elimination between the two sides in the field of trade in goods. China's tariff reduction products account for 97.8% of all tariff lines, of which 97.5% will eventually achieve zero tariff, and 97.4% will achieve zero tariff immediately after the agreement enters into force. Cambodia will grant a zero tariff to China for 90% of tariff lines. Second, the agreement not only contains several chapters on trade in goods, trade in services, investment cooperation and e-commerce, but also covers a wide range of bilateral cooperation areas such as economy, trade, tourism, transportation and agriculture. It is also the first FTA to set an independent chapter on cooperation under the Belt and Road Initiative, which will strongly promote relevant cooperation between the two countries under the framework of the Belt and Road Initiative.

The agreement has provided better market access conditions for products of the two countries, helped promote cooperation in the industrial chain and supply chain, continuously optimised the trade structure, and brought tangible benefits to the people and enterprises of the two countries. Taking trade as an example, according to statistics from the General Administration of Customs of China, the trade volume between China and Cambodia in 2024 has reached 17.83 billion U.S. dollars, up 20.3 per cent year on year. Therefore, China and Cambodia attach great importance to the high-quality implementation of the agreement. In July 2022, China held a video training course on the implementation of the outcomes of the agreement. In June 2023, the first meeting of the Joint Committee of the Agreement was successfully held in Beijing, and the two sides had in-depth exchanges on the implementation of the agreement. The two sides will also hold the second meeting of the Joint Committee of the Agreement this year to conduct in-depth exchanges on further high-quality implementation of the agreement and better benefit the people and enterprises of the two countries.

The signing and implementation of the China-Cambodia FTA is a concrete measure to implement the "high-level opening up" proposed by the 20th National Congress of the Communist Party of China, and also a vivid practice to expand the network of high-standard FTAs facing the world under the framework of WTO rules. China is ready to explore free trade cooperation with more trading partners, promote trade and investment liberalisation and facilitation, share development opportunities, and improve the well-being of people and enterprises.