In recent years, the bond between Cambodia and the U.S. is seen to be stronger for both diplomatic and economic relations. That’s makes the U.S. becomes one of the most important partners and markets for Cambodian domestic products.
On Wednesday 6, 2016, U.S. Ambassador William Heidt announced that the Cambodian travel products such as luggage, backpacks, wallets and other travel items can now be exported to the U.S. without paying duties according to the new U.S. Generalized System of Preferences (GSP).
This expansion of trade preferences to Cambodia is said could generate positive effects to the country. It encourages the domestic manufacturers to produce and export more outputs due to the duty free, as well as attracting the foreign investors to come and invest in Cambodia. It was also estimated to create jobs for thousands Cambodians, due to the increases of demand for local workers.
With the previous tariff ranged from 4.5 to 20 percent, Cambodia exports more than $5 billion annually to its two major textile export markets, the US and EU. Once Cambodia export increases, the country’s trade balance will be moving toward trade surplus, it boosts the overall of the Cambodia’s economy and increases the standard of living its citizens.
- US Removes Tariffs for Cambodian Travel Goods. The Cambodia Daily.
- US Expands Duty Free Access for Travel Goods Made in Cambodia. VOA Cambodia.