Establishment of RCEP to boost Cambodia’s economic growth

The Ministry of Commerce has planned a move towards preferential tariffs on Cambodia’s agricultural exports when the Regional Comprehensive Economic Partnership Agreement (RCEP) comes into effect.

The Ministry of Commerce issued a press release on December 24 on the implementation of the RCEP on January 1, 2022.

The deal is the largest free trade agreement in the world, with 15 members, including all 10 ASEAN members and five ASEAN free trade partners, including Australia, China, Japan, South Korea and New Zealand. RCEP will affect about 2.2 billion people out of 30 percent of the world’s population; it is valued at $ 26,200 billion, or 30% of total world GDP, and will represent 28% of world trade volume.

According to the Ministry of Commerce, based on the results of a study by the Economic Research Institute for ASEAN and East Asia (ERIA), Cambodia is expected to grow by 7.3% in annual exports and 23.4% in investments.

The Commerce Ministry further said that Cambodia will benefit from preferential tariffs on many important products such as agricultural products, processed agricultural products and industrial products when the agreement enters into force.

In an opinion piece for Khmer time, Dr Sok Siphana said: “Due to its size and the diversity of its membership, RCEP will become a strong element in advancing trade liberalization in the Asia-Pacific region. Most importantly, it will mark a big step forward for the world, at a time when multilateralism is losing ground and global growth slows.

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  • Keywords: economic growth, RCEP

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