At its Friday assembly on the research and formulation on the great use of commerce agreements in selling exports, the Ministry of Commerce introduced analysis is at present beneath method on merchandise to be imported and exported beneath the Cambodia China Free Commerce Settlement (CC-FTA). One of many potential sub-sectors deemed promising for export to China is woolen clothes.
Secretary of State of the Ministry of Commerce (MoC) Seang Thay stated that in-depth evaluation on how that individual export market can finest be absolutely realised is underway.
The federal government arrange a particular working group final 12 months to conduct analysis utilizing SWOT (strengths, weaknesses, alternatives and threats) evaluation as to which commodities would have export potential beneath the free commerce settlement.
Seang Thay stated the ministry has carried out its analysis on the potential of enhancing the export alternatives in 9 areas. These are clothes, footwear, particular financial zones, mild trade, meals processing, fisheries, rice, cassava and pure rubber.
The analysis targeted on selling exports to China, find out how to enter the Chinese language market and situations together with the worldwide commerce quantity of associated merchandise and Cambodia’s major export markets.
The ministry additionally studied import tariffs which can be useful to Cambodia and non-tariff boundaries imposed by main buying and selling companions on Cambodia in accordance with the multilateral commerce settlement (MFN) mechanism beneath the China-ASEAN Free Commerce Settlement (ACFTA).
Cambodia and China signed the CC-FTA on Oct 12 final 12 months. It was the primary bilateral free commerce settlement signed by Cambodia and the primary free commerce settlement signed between China and an ASEAN member state.
Because the CCFTA got here into impact, Cambodia has listed 340 extra commodities for export to China. These are along with the ten,000 tariff-free merchandise already listed through the ACFTA.
These 340 merchandise embody peppers, chilis, greens, fruit, fish, meat (together with processed), grains, seafood and quite a lot of canned merchandise, stated the MoC.
In response to the MoC, 95 p.c of the 340 commodities added by the CCFTA, ninety-five will likely be untaxed. Taxes will likely be lowered on the remaining 5 p.c for a interval of a minimum of 10 years.