Free Trade Agreement Between India And Cambodia

Data from the Indian Embassy in Cambodia indicated that the volume of trade between the two countries reached $249.92 million in 2019, up 10.24 percent from $US 226.69 million in 2018. The next step will be to implement their national approval procedures by China and Cambodia to promote the rapid implementation of the agreement. The Ministry of Commerce (MOFCOM) announced that on 12 October, Trade Minister Zhong Shan and Cambodian Trade Minister Pan Sousa represented the Chinese and Cambodian governments in Beijing and Phnom Penh respectively and formally signed the free trade agreement between the Government of the People`s Republic of China and the Royal Government of Cambodia (hereafter known as the Cambodian Free Trade Agreement). Cambodian Prime Minister Hun Sen and the Council of State and Foreign Minister Wang Yi attended the signing of the agreement in Phnom Penh. « We have already set up a negotiating team, and they will discuss with India the possibility of a trade agreement and whether it will be profitable. Products cited by Sopheak included chillies, pineapple, vegetables, fruits, fish, meat, cereals, seafood and a variety of canned products. Cambodian rice, rubber and sugar are not included in the agreement, he said. « We also talked about the volume of trade in our countries, which is constantly increasing, » he said. Seang Thay, a spokesman for the Ministry of Commerce, stressed that traditional relations between the two countries have had a positive impact on trade in both sides. And before August 12, Prime Minister Hun Sen will travel to Beijing to attend the signing of the bilateral trade agreement with China.

Other agreements include the modernization of a hospital and drainage infrastructure in the coastal city of Sihanoukville, according to the Cambodian Ministry of Foreign Affairs. According to Fresh News, China also announced an additional $140 million in aid. He said Cambodia wanted an agreement with India because it had a very large market that would be « very beneficial » to the Cambodian economy. During the meeting, Mr. Jain said he was ready to strengthen bilateral trade relations by creating the Cambodia-India Joint Trade and Investment Group to facilitate trade and investment between the two countries. The negotiation and signing of the China-Cambodia Free Trade Agreement is an important consensus reached by the heads of state and government of both countries. Negotiations began in January 2020. After seven months and three rounds of formal negotiations, they announced the conclusion of the negotiations on 20 July 2020.

The signing of the agreement means that the two sides have entered a new era of global strategic partnership, the joint creation of a Sino-Cambodian community with a common future and « Belt and Road » cooperation. This is a new milestone in the development of bilateral economic and trade relations and will certainly take bilateral economic and trade relations to a new level. The well-being of businesses and people in both countries continues to improve. « I discussed with Ambassador Jain the possibility of establishing a bilateral free trade agreement between Cambodia and India to increase trade and bilateral benefits between our countries. Previous remarks by Cambodian government officials stressed that the agreement focused on improving agricultural exports to China. « When we have this agreement, Indian companies will look to Cambodia to set up processing plants to export to India and other destinations, » he said. Bilateral trade between the two nations was valued at $US 226 million in 2018, up from $US 128 million in 2017. Chea Vannak – The AKP Cambodia is exploring the possibility of concluding a bilateral free trade agreement with India to open a new market with the second regional economy.