Phnom Penh, 2 December 2022 (TDI): The Cambodia-Korea Free Trade Agreement (CKFTA) comes into force yesterday and will be used by two parties to encourage more investors from South Korea to invest in the Kingdom.
This agreement will allow exporting products to the Korean counterpart and third countries.
According to their negotiations and approval, the two nations’ free trade agreement would go into force 60 days after Cambodia received diplomatic notification from its South Korean counterpart.
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Additionally, a joint committee and staff will be formed between the two nations. To ensure maximum efficiency, this will track and monitor how this agreement is used and implemented.
Additionally, activities like consultative workshops with participants, particularly the commercial sector, on the implementation of the agreement will be planned.
Private companies praised the CKFTA. In addition to the current markets and tax advantages, this would open up yet another door for them to increase their exports.
Cambodia-Korea Free Trade Agreement pic.twitter.com/vhjtWeDojf
— Office of Cambodian PM 🇰🇭 (@PeacePalaceKH) December 2, 2022
In accordance with the CKFTA, Cambodia is expected to receive over 95% of the total tariff lines from the Republic of Korea in order to export 92% of all its goods to the latter at zero percent of customs duty as soon as the agreement is put into effect.
Additionally, the CKFTA will enable Cambodia to export a variety of goods. This includes items such as peppers, bananas, cashew nuts, potatoes, pineapples, coffee, fruits, corn, longans, and meats. Also, aquaculture products, sugar, rubber, clothing, textiles, footwear, bicycles, travel accessories, luggage, and more.
On the other hand, the Republic of Korea will be able to export goods. This includes electronics, cars, agricultural machinery, construction and agricultural machinery, raw and processed textiles, cosmetics, food, groceries, and other goods.
— Office of Cambodian PM 🇰🇭 (@PeacePalaceKH) November 2, 2022
However, the government of Cambodia has set objectives to create this kind of agreement with other nations, including Japan, India, and the United Arab Emirates.
On September 27, 2022, the National Assembly of the Republic of Korea formally approved CKFTA by ratifying it.
This will make Cambodia’s second bilateral trade agreement fully legitimate and effective for enforcement in a period of time that will probably be 60 days.