MGR Online — Sun Chanthol, Deputy Prime Minister of Cambodia, held a press conference today (27) stating that exports of garments made from cotton and fabric sourced from the United States may be exempt from additional import tariffs upon entering the American market, under a trade arrangement currently being considered by Washington.
Sun Chanthol, who also serves as Vice Chairman of the Council for the Development of Cambodia (CDC), said Cambodia is one of four countries eligible for "MFN+0" tariff treatment, or tariff-rate quotas, if manufacturers source cotton and fabric from the United States, produce garments domestically, and then export them back. The four countries in question are Cambodia, Malaysia, Indonesia, and Bangladesh.
"The United States is considering this arrangement — if we purchase cotton and fabric from the US to produce garments in Cambodia before exporting them back," Sun Chanthol said.
The proposal comes after the United States announced a new import tariff rate of 10% on Cambodia, which Sun Chanthol noted applies equally to Cambodia, Malaysia, and Indonesia, while Thailand and Vietnam face a tariff rate of 12.5%.
Meanwhile, Cambodia remains among a group of 16 countries currently under US investigation regarding excess production capacity, with results expected within two to three months.
Sun Chanthol said the United States Trade Representative has assured Cambodia that retaliatory tariff rates will not exceed 19%, adding that the US has already granted MFN+0 tariff treatment to 154 product categories — underlining the potential opportunities available to Cambodian exporters.
