A 19-member Cambodian delegation left Cambodia to launch Cambodia-US tariff negotiations in the second week of May. Whatever the outcome, we must be mentally and physically prepared to deal with this situation because negotiations are always going to have successes and failures because we want to protect our interests and they want to protect theirs.
Mr. Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia, led the working group to carry out the negotiation mission on the Cambodia-US FTA. At 12:35 p.m. on May 10, 2025, due to some changes in the negotiations, the initial schedule was from May 14 to 15. But there was a slight change, with the talks scheduled for the afternoon of the 13th and 14th, and the talks will last all day on the 15th.
Before leaving, the Deputy Prime Minister told reporters that some of the upcoming discussions will not be related to tax rates at all. That is why Cambodia has prepared components from all sectors to prepare, including customs, security, banking, foreign affairs, postal services and telecommunications, etc.
He stated that the departure of the Cambodian delegation to negotiate in the United States is not without hope for Cambodia. He stressed that if we do not have hope, we will not go to negotiate. We have done a lot of work in this negotiation, and in addition to the members of this working group, we are also preparing to work with a lobbying firm.
He also continued that so far, Cambodia is one of the 18 to 20 countries that are really willing to negotiate with the United States, and the United States has also agreed to receive and open the door to receive a Cambodian delegation to negotiate with them directly. He confirmed that Cambodia is really willing to negotiate. That is why we still have hope.
He also revealed that through the past negotiations through the Zoom system, the United States has also understood Cambodia’s situation, especially regarding Cambodia’s purchasing power. The United States also knows very well that Cambodia really has no basis in increasing the trade balance, which the United States says we export to them more than 12 billion and we import from them only 300 million, because the development of each country is different. The United States side knows this problem. The US side also said that it wants Cambodia to buy more goods from the US, and it also asked Cambodia to help protect US intellectual property rights, identify the source of goods exported from Cambodia, especially the origin of these goods, etc.
So far, Cambodia is one of the countries in Southeast Asia that has been subject to the highest tariffs by the US. The high tariff of 49 percent is very high and could affect Cambodia’s export market, especially the garment industry, which is known to employ about 1 million workers and many more indirect beneficiaries.
In the meantime, Cambodia’s export situation continues to grow positively because the US administration has delayed the implementation of the tariff for about The first week of July, to allow time for negotiations.
In the first quarter of 2025, Cambodia could achieve exports of approximately $6.8 billion, of which Cambodia could export approximately $2.4 billion to the United States, a similar amount to other countries in Asia, and approximately $1.2 billion to Europe.
Based on the figures for the beginning of this year alone, we see that it will be affected quite a bit. In this case, the tariff negotiations with the United States do not suit our purposes. Therefore, we also hope that Cambodian officials will do their utmost to protect the interests of our motherland, and we also hope that the United States will understand Cambodia as a small country that has compassion and is truly willing to work with the United States on the basis of mutual benefits and a win-win formula.
We know that this is not an easy task. No matter how much pressure we face, let us be patient, smile, and work hard together so that this negotiation can achieve a result that is acceptable to both sides. In particular, apart from the expert group that will negotiate, we who are waiting for the results must also be prepared for all measures, both successful and unsuccessful negotiations, to adjust the situation in a way that can continue the normal operation of the export market and so that the industrial factories that serve our trade sector can continue to operate, continue to operate, in one step, even if it is not fast, but still move forward slowly to achieve our long-term vision.
