PHNOM PENH, May 26 (Xinhua) -- A Cambodian commerce official on Monday underlined the significance of the Regional Comprehensive Economic Partnership (RCEP) agreement in boosting global trade amidst the U.S. trade protectionism.
Cambodian Ministry of Commerce's Secretary of State and spokesperson Penn Sovicheat said the RCEP, comprised of 15 Asia-Pacific countries, is a huge market with strong purchasing power because the combined population in the RCEP countries is up to 2.3 billion people.
For Cambodia, Sovicheat said the Southeast Asian country has been actively diversifying its export markets, expanding its exports into RCEP countries and new markets such as the United Arab Emirates.
"It's our hope to free ourselves from relying on one market only," he said.
Entered into force in 2022, the RCEP countries include 10 ASEAN member states -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.
Kin Phea, director general of the International Relations Institute of Cambodia, a think tank under the Royal Academy of Cambodia, said the trade pact has been playing a greater role in boosting global trade amidst U.S. tariff hikes.
"The U.S. shift toward protectionism, marked by tariffs on allies and industrial subsidies like the Inflation Reduction Act, has disrupted supply chains and created uncertainty," he told Xinhua.
"Against this backdrop, the RCEP has become a stabilizing force, fostering economic integration across the Asia-Pacific," he said.
"While the United States has increased import tariffs even on its allies, the RCEP eliminates 90 percent of intra-regional duties while standardizing customs and e-commerce rules," Phea added.
According to a Cambodian Ministry of Commerce's report, the kingdom exported 9.06 billion U.S. dollars worth of products to the RCEP member countries in 2024, up 12.8 percent from 8.03 billion dollars in 2023.
The RCEP market accounted for 33.9 percent of Cambodia's total export volume of 26.66 billion dollars last year, the report said.
Cambodia's top five export destinations under the regional mega-trade deal are Vietnam, China, Japan, Thailand, and Australia, the report said. ■
