Sun Chanthol, first vice-president of the Council for the Development of Cambodia (CDC), has emphasized the need for the country to bolster its economic competitiveness. Speaking at a press conference on July 27 regarding recent US trade investigations, Chanthol cautioned that relying on preferential tariff rates is not a sustainable long-term strategy for the Kingdom.
Currently, Cambodian exports to the United States are subject to a 10% tariff in addition to the standard Most Favored Nation (MFN) rate. While the government anticipates that total tariff burdens will likely remain capped at 19% following a trade agreement signed in July 2025, officials are preparing for potential adjustments related to upcoming US “Excess Capacity” tariff clarifications. These measures are expected to impact several nations, including Cambodia and other ASEAN members.
To mitigate these external pressures, Chanthol noted that Prime Minister Hun Manet is spearheading a series of reforms aimed at improving the national investment climate. These initiatives include streamlining business registration, enhancing infrastructure, reducing logistics expenses, and increasing the availability of clean energy. The government is also prioritizing workforce development to ensure the country remains a viable destination for international investment.
“We must continue making our own efforts and not rely solely on preferential tariff rates,” Chanthol stated. He stressed that the nation’s future success depends on lowering domestic production costs to compete globally, rather than depending on trade concessions that could be revoked or altered at any time.
Source: Phnom Penh Post
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