CAMBODIA: South Korea Free Trade Agreement Ratified

The Cambodia-Korea Free Trade Agreement (CKFTA) was signed into law by Cambodia’s King Norodom Sihamoni on 29 January 2022. It will come into effect 60 days after both countries deposit their instrument of ratification with the other party, expected to be no later than 30 June this year. 

Cambodia already enjoys special trading benefits with South Korea under the ASEAN-Korea Free Trade Agreement, and the Regional Comprehensive Economic Partnership Agreement (RCEP). The new bilateral agreement is expected to further boost trade and investment between the two economies. 

Under CKFTA, Cambodia will eliminate duties on 93.8% of imported goods, while South Korea will remove tariffs on 95.6% of imported products. The new deal should particularly support the duty-free export of South Korean auto parts, electronics, and pharmaceutical products. Cambodia will be able to export a range of goods at zero duty, including garments, footwear, bags, agricultural goods, spare parts, rubber, light industrial products, and electronic components.