PHNOM PENH: The Regional Comprehensive Economic Partnership (RCEP) formed last year appears to be having a positive impact on Cambodia’s regional export market. When compared to the same time last year, Cambodia has seen a 24% increase in exports to other RCEP countries amounting to just over $4 billion US, according to a report from the Ministry of Commerce showed on Monday.

The RCEP went into effect on January 1, 2022 and is a free trade agreement comprised of 15 countries, including the ten ASEAN members and Australia, China, New Zealand, Japan and South Korea. Cambodia’s top three export destinations within the RCEP are Vietnam, Thailand, and Singapore, with shipments worth over $1.4 billion US, $527 million US, and $415 million US, respectively.

Spokesperson of the Ministry of Commerce, Penn Sovicheat, said that Cambodia’s trade with RCEP countries have increased due to the trade preferences under the mega-regional trade pact. “With almost zero trade tariffs, exporters have been able to take advantage of the trade deal, resulting in increased exports and imports from Cambodia,” he said.

While Cambodian exports increased in the first half of 2023, the Kingdom’s imports from the RCEP countries decreased by 17%, totalling about $10.7 billion US.