S Korea signs free trade agreement with Cambodia

26 Oct '21

2 min read

South Korea and Cambodia recently signed a free trade agreement (FTA) to deepen economic ties, according to the former’s ministry of trade, industry and energy. Under the agreement and the envisioned Regional Comprehensive Economic Partnership (RCEP), Cambodia will lift tariffs on 93.8 per cent of all products traded, and South Korea will remove tariffs on 95.6 per cent of all items.

Seoul struck the deal with Phnom Penh in February this year and wrapped up domestic procedures, including parliamentary approval.

South Korean trade minister Yeo Han-koo and his Cambodian counterpart Pan Sorasak signed the pact during a virtual ceremony, the ministry said.

The RCEP is a regional trade pact, which covers 10 ASEAN nations and its five dialogue partners—South Korea, China, Japan, Australia and New Zealand. South Korea now awaits parliamentary approval.

South Korea's major exports to Cambodia include cars, machinery, textiles and agricultural and marine products. It mostly imports textile-based goods and agricultural products from the Southeast Asian nation.

"The FTA is expected to boost our access to the Mekong River market and to strengthen our value chain, as Cambodia is the hub of the region and bears great economic growth potential," a news agency quoted the ministry as saying in a release.

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