[INNEWS Comprehensive Report] According to a report released by the U.S. Census Bureau on August 28, from January to June 2023, the bilateral trade volume between Cambodia and the United States was US$5.3 billion, a decrease of 14% from the US$6.2 billion in the same period last year. Among them, Cambodia’s exports to the United States reached US$5.1 billion, down 10.6% from US$5.9 billion in the same period last year. Cambodia’s imports from the United States have fallen even more significantly, from US$260 million last year to US$164 million, a drop of 37%.
Cambodia’s main exports to the US include clothing, apparel accessories, leather, travel goods, handbags, electrical machinery and equipment, and footwear. Cambodia’s imports from the United States are mainly vehicles, machinery and mechanical appliances, medical equipment and medicines. Penn Sovicheat, deputy secretary of state and spokesperson of the Cambodian Ministry of Commerce, said that the market share of Cambodia’s exports to the United States has declined, mainly due to slow economic growth in the United States, which has led to a slowdown in demand for clothing, footwear and travel goods.
It is understood that the preferential treatment of the Generalized System of Preferences for tourism commodities enjoyed by Cambodia will expire in December 2020. Clothing, footwear and light industrial manufacturing products are subject to Most Favored Nation (MFN) tariffs in the US market. The Cambodian Ministry of Commerce has recently hoped that the United States can renew the GSP, which will help strengthen trade cooperation between the two countries and create more mutually beneficial economic benefits.
On the other hand, Ly Khun Thai, chairman of the Cambodian Footwear Association, said that due to the impact of the war in Ukraine and inflation, GTF’s exports to major markets (Europe and the United States) have declined. The association is currently working to diversify exports of GFT goods to include China, Korea, Japan and other markets. Bilateral trade between Cambodia and the United States will reach US$12.65 billion in 2022, a 38 percent increase from US$9.15 billion in 2021, according to a report by the US Census Bureau.