The Ministry of Commerce forecasted a development towards preferential tariffs on Cambodia’s agricultural exports when the Regional Comprehensive Economic Partnership Agreement (RCEP) enters into force.
The Ministry of Commerce issued a press release on December 24 on the implementation of the RCEP on January 1, 2022.
The agreement is the largest free trade agreement in the world, with 15 members, including the 10 ASEAN members and five ASEAN free trade partners, including Australia, China, Japan, South Korea and New Zealand. The RCEP will affect approximately 2.2 billion people of 30 percent of the world’s population; it is valued at $26.2 trillion or 30 percent of the world’s total GDP, and will account for 28 percent of the global trade volume.
According to the Ministry of Commerce, based on the results of a study by the Economic Research Institute for ASEAN and East Asia (ERIA), Cambodia is expected to grow 7.3% in annual exports, 23.4% in investments.
The Ministry of Commerce further stated that Cambodia will receive preferential tariffs on many important goods such as agricultural goods, processed agricultural products and industrial goods when the agreement enters into force.
In an opinion piece for Khmer Times, Dr Sok Siphana said, “By virtue of its size and the diversity of its membership, RCEP will become a solid building block for advancing further trade liberalisation in the Asia-Pacific. More importantly, it will mark a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing down.”
Check out more: https://www.khmertimeskh.com/50992839/the-regional-comprehensive-economic-partnership-rcep-and-the-business-prospects-for-cambodia/
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