Phnom Penh: The Regional Comprehensive Economic Partnership (RCEP) agreement, which researchers see as beneficial to Cambodian and regional trade, will take effect on January 1, 2022, tomorrow.

Through this agreement, Cambodia will be able to export goods to 15 countries comprised of the 10 ASEAN members and five ASEAN partners (China, Japan, Korea, Australia and New Zealand), accounting for 28% of the total world trade volume. Many major commodities, such as agricultural, agro-processing and industrial goods, will be allowed to be imported to these countries, with an average duty exemption of more than 90% for Cambodia.

In addition to the benefits of exporting, Cambodia will also benefit from other aspects of the agreement, which include the transfer of technology, knowledge and skills from foreign direct investments, as well as the creation of new jobs for people in Cambodia.

According to a study by the Economic Research Institute for ASEAN and East Asia (ERIA), through this free trade agreement, Cambodia is expected to grow 7.3% year on year in exports, 23.4% in investments, and about 2% in overall GDP.

It should also be noted that Cambodia has already reached a free trade agreement with China, while a free trade agreement with South Korea is currently in the process of review and approval by the National Assembly.