World Trade Relationships
Cambodia maintains trade relationships with several prominent global powers, including China, the United States, the European Union and Japan. Cambodia primarily exports garments, home/travel wares, footwear and agricultural products to all its trade partners.
China is Cambodia’s largest trading partner. In 2022, the trade volume between the two countries amounted to US$16.14 billion. Cambodia imports machinery, electronics, textiles, chemicals, fuels, food and construction materials from China. China also serves as the biggest source of foreign investment for Cambodia, and the two countries have a free trade agreement.
The United States (US) ranks as Cambodia’s second-largest trading partner. In 2022, trade between the two nations reached US$13 billion. Cambodia imports machinery, electronics and vehicles. The United States also acts as Cambodia’s main export market. There have also been discussions about the possibility of a US-Cambodia free trade agreement. In 2022, Cambodia exported approximately US$8.9 billion worth of goods to the United States, accounting for roughly 40% of the country’s total exports.
The European Union (EU) holds the position of Cambodia’s third-largest trading partner. In 2022, the total trade between the two entities amounted to US$6.9 billion. Cambodia imports machinery, electronics and vehicles from the EU. Moreover, the EU serves as Cambodia’s primary source of official development assistance. A free trade agreement is in place between the EU and Cambodia.
Japan is Cambodia’s fourth-largest trading partner. In 2022, the total trade between the two countries amounted to US$1.9 billion. Cambodia imports machinery, electronics and vehicles. Japan also makes significant investments in Cambodia. A free trade agreement is also in place between Japan and Cambodia.
The trade relationships between Cambodia and these global powers offer the following key advantages:
Access to new markets:
Cambodia’s trade relationships grant the country access to new markets for its exports. This facilitates economic growth and the creation of employment opportunities.
Investment:
Major global powers serve as significant investors in Cambodia. Their investments contribute to infrastructure development, job creation and overall economic growth.
Technology:
Major global powers serve as important sources of technology for Cambodia. Acquiring such technology aids in enhancing the productivity of Cambodian businesses and propelling economic growth.
Economic growth and stability:
Cambodia’s trade relationships with major global powers play a crucial role in promoting economic growth and stability within the country. This holds important implications for Cambodia’s long-term development.
