Sun Chanthol, first vice-president of the Council for the Development of Cambodia (CDC), has cautioned that the country should not grow complacent regarding its current trade status with the United States. Speaking at a press conference on July 27, Chanthol emphasized that Cambodia must prioritize long-term economic growth by fostering a more robust investment environment.
The remarks follow a series of shifts in US trade policy. After initial high tariffs were proposed in 2025, subsequent negotiations led to reductions. Currently, Cambodia is subject to a 10% tariff under Section 301 of the US Trade Act of 1974, a rate shared by several other nations. While Chanthol expressed confidence that future "Excess Capacity" tariffs would likely keep the total burden at or below 19%, he stressed that relying on such preferences is not a sustainable strategy.
"We must continue making our own efforts and not rely solely on preferential tariff rates," Chanthol stated. He highlighted the necessity of lowering production costs and improving international competitiveness to ensure the economy remains resilient regardless of external trade policies.
To achieve this, the government, led by Prime Minister Hun Manet, is pursuing a series of reforms aimed at enhancing the national business climate. These initiatives include streamlining business registration, upgrading infrastructure, reducing logistics expenses, increasing access to clean energy, and upgrading workforce skills. Chanthol warned that failing to implement these comprehensive changes could leave the country vulnerable if preferential trade terms are eventually withdrawn.
Source: Phnom Penh Post
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