The free trade agreement (FTA) between South Korea and Cambodia, signed last week, is expected to boost the bilateral trade, including textile and clothing trade, between the two Asian countries. Finished textile-based products such as garments, footwear and travel bags are covered under the FTA which removes tariffs on over 90 per cent of goods.
Under the FTA, together with the Regional Comprehensive Economic Partnership (RCEP), Cambodia will do away with tariffs on approximately 93.80 per cent of Korean goods, while Korea will withdraw tariffs on 95.6 per cent of its imports from Cambodia.
As shown in the graph above, during October 2020 to July 2021, South Korean textiles and clothing exports to Cambodia were higher compared to Cambodian textiles and clothing exports to South Korea. But the situation is expected to reverse in the upcoming period.