Cambodian exports to US surpass $1B in Q1 for first time

C A MBODI A N ex por ts to t he US have seen a strong expansion t his yea r, su r passi ng $1 bi l l ion i n t he first quarter for the first time, thanks la rgely to a boost i n t ravel goods exports.

Cambodian-made suitcases and handbags have been provided access to the US market under the Generalised System of Preferences (GSP) programme since July 2016. Access has cont r ibuted sig ni f ic a nt ly to i ncreasi ng t he va lue of t he Ki ngdom’s exports to the countr y.

According to t he latest trade data from the US government, Cambodian exports from Januar y to March amounted to $1.12 billion – up 24 per cent from $ 903.6 million during the same period last year.

Bi latera l t rade bet ween t he t wo countries amounted to $1.24 billion in the first three months of this year. Of t his, Cambodian imports from the US amounted to $122 million.

The US’ goods trade def icit wit h Cambodia was $ 998 million during t he f irst t hree months of t his year.

US embassy spokesman Arend C Zwartjes told The Post on Tuesday t hat t he US rema i ns Ca mbodia’s la rgest si ngle ex por t market, a nd Cambodia is a beneficiar y of dut yf ree market access under t he US’ GSP programme.

He said exports under GSP more than doubled to over $720 million last year, led by travel goods.

“Our embassy worked ha rd to have travel goods added to t he list of GSP-eligible products, something that happened in 2016.

“That action helped Cambodian exports in that one category of goods a lone to increase f rom about $ 50 million in 2016 to just under $400 million last year, as well as bring in many millions of dollars in investment,” he said.

According to Zwartjes, top Cambodia n ex por ts to t he US include t e x t i le s a nd foot wea r. Top US exports to Cambodia are vehicles, animal feed and machiner y.

Last year, Cambodia was the US’ 57th largest supplier of imports and its 104t h largest export market. The va lue of Cambodian exports to the US tota l led $ 3.8 bi l l ion last yea r, while US ex por ts to t he Kingdom were va lued at $447 million.

Garment Manufacturers Association in Cambodia president Van Sou Ieng on Tuesday echoed Zwartjes’ comments that the huge increase in t he ex por t of Ca mbodia n-made

travel goods to the US was the main factor behind the significant rise in Cambodian exports to that country.

Sou Ieng said after Cambodia was listed as a beneficiary of duty-free market access under GSP in July 2016, the value of eligible items exported had increased more than 10-fold within the two-year period between 2016 and last year.

He said the number of factories producing travel goods has greatly increased to around 80 today.

“The export of travel goods from Cambodia to the US will continue to increase this year at a growth rate of least 30 to 40 per cent. With the results early in the year, I think the export of goods from Cambodia to the US will continue to rise strongly for the whole year,” he said.

However, there are uncertainties in t hat t he US could rev iew its preferentia l ta rif f arrangements with Cambodia. Zwartjes said the US remains concerned about perceived human rights issues in the Kingdom and the alleged weakening of democratic institut ions.

He said the US Congress, in particular, has made it clear that they share these concerns and are continuing to introduce legislation that, if passed, would include a number of punitive steps against Cambodia.

“The proposed legislation now being considered by Congress includes provisions that would require [ US President Donald Trump’s] Administration to review GSP benefits.

“But the Administration has not taken a position on these bills, and we do not know how likely they are to go forward,” Zwartjes told The Post.