South Korea’s National Assembly yesterday ratified a free trade agreement (FTA) with Cambodia, rounding off the final domestic procedure essential for the implementation of the FTA signed in October last year. The FTA, signed into law in Cambodia in January this year and ratified in June, is expected to boost Cambodian exports of garments, textiles and footwear to South Korea.
The agreement also presents opportunities for value-added investments in Cambodia’s downstream processing industries through a ‘plus one business model’, in which South Korean companies could expand their supply chain network developed in not only China but also Vietnam or Thailand.
The Cambodia-Korea Free Trade Agreement (CKFTA) is expected boost trade between the two countries with South Korea agreeing to remove tariffs on 95.6 per cent of products imported from Cambodia, while Cambodia will eliminate duties on 93.8 per cent of imported goods, according to media reports from South Korea.
