Cambodia, US Congress agree to deepen trade ties
Cambodia, US Congress agree to deepen trade ties
The Royal Government of Cambodia (RGC) and the United States Congress Monday discussed strengthening cooperation in key sectors, including the economy, trade, investment, education, health, and mine clearance.
Nearly a month after Donald Trump was sworn in as the 47th President of the United States, a US Congressional delegation led by Jimmy Panetta, Representative of California’s 19th Congressional District and member of the Democratic Party paid a courtesy visit to Prime Minister Hun Manet at the Peace Palace on February 17.
Salud Carbajal, Representative of California and member of the Democratic Party, and Darin LaHood, Representative of Illinois’s 16th Congressional District and member of the Republican Party among others were present on the occasion.
Prime Minister Hun Manet and the US Congressional delegation discussed ways to strengthen and expand cooperation across various sectors including the economy, trade, investment, education, health, mine clearance, politics, national defence and security.
The visiting delegation praised Cambodia’s rapid development and highly valued the strong cooperation between the two nations.
They highlighted the significant progress in bilateral relations, marking an important milestone as Cambodia and the US celebrate the 75th anniversary of their diplomatic ties.
Expressing confidence in the Kingdom’s continued growth under Prime Minister Hun Manet’s leadership, the delegation reaffirmed their commitment to working with the US government to deepen understanding of Cambodia and strengthen the bilateral partnership.
Mr Hun Manet expressed his deep appreciation for the progress in bilateral relations and cooperation. He thanked the US government and its people for their continued support in the socio-economic development.
He said that the visit of the US Congress, along with the frequent exchanges of visits between senior officials from both countries, would further strengthen the cooperation, ultimately elevating bilateral relations to a higher level.
Later on the day, the US Congressional delegation met with Khuon Sudary, President of the National Assembly (NA), where they committed to strengthening further economic cooperation.
During the meeting, Sudary noted that economic ties between the US and ASEAN, particularly Cambodia, have been improving over the years.
The NA President emphasised that Cambodia-US relations are on a ‘positive trajectory’ and expressed optimism about continued growth in their partnership.
Speaking to Khmer Times, Anthony Galliano, Group CEO of Cambodian Investment Management Holdings (CIM), stressed the importance of strengthening Cambodia’s relationship with the US in the wake of one of the most consequential elections in American history.
“Given the administration’s rapidly executed agenda, he noted that reinforcing bilateral ties is crucial, particularly due to the significant trade links between the two nations.”
Galliano pointed out that the US has trade deficits with several countries, primarily China, Mexico, and Canada, which remain key concerns for the administration. As Cambodia’s largest export market—particularly for garments and footwear—US-bound exports account for 27 percent of the Kingdom’s GDP.
“Given the integral trade connection with the US, maintaining, if not expanding, the relationship under the new administration is a prudent strategy. This visit by the delegation is a positive step,” he stated.
He further highlighted that the US is investing billions into the region, particularly in sectors such as artificial intelligence, semiconductors, cloud computing, and data centres.
While Vietnam, Malaysia, Indonesia, and Thailand have been the primary beneficiaries of ASEAN, shifting supply chains presents a generational opportunity for the region.
Cambodia still has a window of opportunity to capitalise on these transformative developments, but it must build credibility and trust with the US to fully leverage its potential, the CIM CEO added.
Hong Vanak, an economic researcher at the Royal Academy of Cambodia, emphasised that the first meeting between Cambodia-US high-level delegations since the Trump Administration assumed office on January 20 is no coincidence, given the current global trade and tariff tensions.
Vanak noted that recently, powerful nations have leveraged both economic and political strategies to enhance bilateral partnerships for mutual benefits.
“Since the suspension of the Generalized System of Preferences (GSP) in 2020, trade between the two countries has significantly increased. Cambodia’s exports to the US reached nearly $10 billion last year, accounting for about 40 percent of the Kingdom’s total exports, while imports from the US were around $300 million.”
Vanak identified two primary reasons for this growth. Firstly, Cambodia positions itself as a low-cost supplier, and secondly, the US government intends to improve labour conditions. However, he also acknowledged that many other countries are capable of supplying goods to the American market as well.
Source: Khmer Times
