The Cambodia-Korea Free Trade Agreement (CKFTA) will come into effect two weeks after the agreement enters into force on December 1, 2022, as South Korean investors are encouraged to invest in Cambodia’s processing and automotive industries. have started promoting bilateral trade between the two countries, one person said. Release from the Department of Commerce.
The progress made through the CKFTA was revealed on Tuesday at talks between Minister of Commerce Ban Sora Sak (MoC) and a South Korean delegation led by South Korean Ambassador to Cambodia Park Heung-kyung, after completing his diplomatic term in the Kingdom. said to leave. release on wednesday.
The release notes that the CKFTA has enabled bilateral trade between Cambodia and South Korea to reach $500,000 in the first two weeks of December 2022. Sorasak appreciated the successful completion of Hungyeong in Cambodia, especially for facilitating the enacted bilateral free trade negotiations. agreement.
Heung-kyeong appreciated the implementation of the CKFTA and the avoidance of double taxation agreements between the two countries, and hoped that these agreements would increase the confidence of South Korean investors to invest more in Cambodia. He also praised Sorasak for chairing related meetings with his ASEAN economy minister.
Sorasak told the South Korean ambassador that the trade volume between Cambodia and South Korea has increased from about $772 million (6 percent) in 2020 to 4 in the first 10 months of this year compared to the same period in 2021. It said it increased a percent to $659 million. In 2019 he increased from $729 million.
“The bilateral trade volume between the two countries has been very positive…The Ministry of Commerce stands ready to work closely with the new ambassadors to continue bilateral cooperation and collaboration to produce new achievements. Sorasak said, the South Korean government and people have provided financial and technical support to Cambodia.
The Commerce Minister went on to say that support was provided for Cambodia to implement economic development projects to revive the economy in the post-pandemic period, such as building the Cambodia-South Korea Friendship Bridge to allow people to cross the Tonle Sap River. added. and the Mekong River.
“The new investment law will be a great encouragement for the processing and automotive industries,” he said. The two leaders reaffirmed their commitment to continue close cooperation to strengthen, expand and promote bilateral relations in the development of economy, trade and investment.
Hung Kyung highly appreciated the relationship between Cambodia and South Korea, especially in politics, economy, commerce and personnel exchanges. The ambassador also thanked Cambodia for helping South Korea to become a candidate for the director-general of the International Trade Organization in 2021, and wished it a successful 2022 presidency of the Association of Southeast Asian Nations (ASEAN). I applauded Cambodia for winning.
Article 10.10 of the CKFTA stipulates that a free trade agreement between the two countries will enter into force 60 days after Cambodia obtains a diplomatic notice from its Korean counterpart pursuant to negotiations and agreements. Under the CKFTA, Cambodia is expected to receive more than 95% of her total tariff items from South Korea to export 92% of all goods to South Korea at 0% tariff immediately after signing the agreement.
“Additionally, the parties will form a joint committee and workforce to track and monitor the operation and implementation of this agreement to achieve high effectiveness,” said a Department of Commerce spokesman and secretary of state. One Seng Thai said. This notice comes after the Embassy of the Republic of Korea issued a notice to the Ministry of Foreign Affairs and International Cooperation (MFAIC) of the Kingdom of Cambodia on October 2, 2022.
Lim Heng, Vice Chairman of the Cambodian Chamber of Commerce (CCC) said: Khmer Times In addition to current market and tax incentives such as the All But Arms (EBA) and the Generalized System of Preferences (GSP) offered by the United States, private companies will benefit from additional incentives under the CKFTA to expand exports of goods. Praised CKFTA because it will be the gateway. In the near future, it will run out for Cambodia.
“The more important thing is implementation, and during implementation we look at problems or challenges or requirements, put them on the table and find countermeasures to maximize the benefits,” he said. Cambodia would rather rely more on such free trade agreements, he added.