Illustrative image (Source: https://www.phnompenhpost.com/)Phnom Penh (VNA) – Cambodia’s export of travelgoods surged in the January-September period of this year to 385 million USD,mostly thanks to tax privileges they received fromthe US under its Generalised System of Preferences (GSP).
Accordingto the Phnom Penh Post, an amendment to the GSP that went into effect in July2016 removed US customs tariffs on Cambodian-made travel products such asluggage, backpacks, handbags and wallets.
Theitems, which previously faced tariffs of between 4.5 and 20 percent, now enterthe US duty-free under the expanded programme.
Underthe programme, approximately 5,000 products from 122 beneficiary developingcountries and territories – including 43 least-developed countries – areeligible for duty-free export to the US.
TheUS’ and the EU’s preferential trade schemes have been very beneficial to theKingdom’s footwear and travel goods exports, Ministry of Commerce secretary ofstate Sam Sereirath was quoted as saying.
GarmentManufacturers Association in Cambodia chairman Van Sou Ieng said that there hasbeen a large increase in investment flow into the travel goods sector now sinceCambodia obtained market access under the GSP to the US, adding that this is agood sign.
Datafrom the Ministry of Economy and Finance showed that in 2016, Cambodian goodsexported under the GSP scheme was 50 million USD. Last year, the figure went updramatically to 400 million USD.
Accordingto the International Labour Organisation, Cambodia remained among the top 10footwear exporters, with its exports valued at more than 1 billion USD lastyear, a 19 percent increase from 2017.
Cambodia’smain export markets for shoes are the EU (46 percent), the US (17 percent),Japan (12 percent) and Canada (5 percent)./.
