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Second round of Cambodian Korean free-trade agreement concludes
Cambodia and South Korea will finalise the second round of Cambodian Korean Free Trade Agreement (CKFTA) today as both nations look to diversify their trade portfolio.
The four-day talks started on Aug 31 and were held virtually because of COVID-19 travel restrictions.
Speaking about the negotiations this week, Ministry of Commerce spokesperson Seang Thay said: “Negotiations have been going well with second-round talks discussing matters concerning market access.”
“We will also be finalising on paper negotiations relating to trade in goods, sub-trade, rules of origin, customs procedures and trade facilitation, economic cooperation and legislation and institutions.”
The first round of negotiations, which began on July 30, discussed market compatibility, when the two countries determined the scope of products.
Future negotiations are scheduled to undergo two more rounds of talks and aim to be completed by the end of the year.
Cambodian Ambassador to South Korea Long Dimanche said there is vast potential in both countries because “the markets aren’t competitors but are supplementary to
each other”.
“Both countries see potential in each other’s markets which opens up opportunities for exports and imports. Cambodia is rich in agricultural and agro-industry products, which can be exported to support heavy industrial products in South Korea.
“In return, imports of high-quality heavy industrial machinery would greatly advantage our country’s development and technological expertise, while creating more jobs in its manufacturing.
“Our workforce is very active, with around 60 to 70 percent being under 40 years old. This will be a great opportunity to develop and expand their knowledge, especially in technology, to better process and utilize our country’s natural resources.”
The CKFTA was setup from Prime Minister Hun Sen’s plans for a bilateral free-trade pact during his summit with South Korean President Moon Jae-in in March last year. More than 100 representatives from the private sector attended the summit to discuss and promote trade between the two countries.
Chamber of Commerce Vice-President Lim Heng said the trade agreements will not only boost Cambodia’s market potential with Korea but open opportunities to Asean countries as well.
“The CKFTA is expected to be a success for our country. The opportunities have been plentiful as can be seen by the years of Korean investments and trade associations established in the country,” said Heng.
“The Kingdom will need resources, especially agricultural products, ready for future export. The tourism and industrial sectors will need to be prepared to welcome more activity to the country.
“We also have an FTA [free-trade agreement] with China so it will further attract investors to also take into consideration the Chinese and Asean markets.”
South Korea currently has an FTA with Asean but has also begun to pursue separate deals with each member to customise the pact.
Cambodia is South Korea’s 58th largest export destination, exporting goods worth $336 million to South Korea and importing $697 million into the country.
Source: https://www.khmertimeskh.com/50760214/second-round-of-cambodian-korean-free-trade-agreement-concludes/