Illustrative image (Source: khmertimeskh.com)Phnom Penh (VNA) - Cambodian exporters are hopeful that a freetrade agreement with the Republic of Korea (RoK) will boost trade between thenations and attract more investment into the Cambodia, local media reported.
Officials of the two countries early this week agreed to conduct a feasibilitystudy into the creation of an FTA between the nations.
Chang Hoon Lee, managing director of RoK exporter Hyundai Agro, said themove is a positive development. A free-trade pact will boost trade between thecountries and bring more investments into Cambodia, he noted.
“Under an FTA, tariffs to export mangoes will likely decrease, which meanscustomers can buy good quality mangoes at a cheaper price,” he told Khmer Times.
Cambodian mangoes exported to the East Asian nation are subject to a 30 percenttariff, but Lee said he expects the tax will reach zero percent in the nextfive years.
The RoK is the biggest investor in Cambodia’s agricultural sector, according toLee, who said the FTA will attract even more investors from the East Asiannation.
“This investment could expand into more sectors, such as heavy industries andthe manufacturing of plastic, automobile parts, paper, and steel.”
Cambodia’s Ministry of Commerce said the FTA with the RoK will help expand andboost trade ties between the countries./.
VNA
