UAE, Cambodia ink major trade pact

The UAE and Cambodia have signed a Comprehensive Economic Partnership Agreement (CEPA) that is expected to more than double non-oil bilateral trade from $407 million in 2022 to $1 billion within five years.

The pact was signed in Phnom Penh by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Pan Sorasak, Cambodia Minister of Commerce.

It seeks to eliminate or reduce customs duties, remove trade barriers, facilitate investments, open market access to services exports, and create more opportunities for businesses to forge new partnerships.

The signing of this agreement builds on the strong bilateral trade ties between the UAE and Cambodia, which reached a record $407 million in 2022, marking a 33 per cent increase from 2021 and a 28 per cent surge compared to 2019.

The UAE is also a top trading partner for Cambodia in the Arab world, accounting for 70 percent of its trade with the region in 2022.

The agreement holds significant potential for mutual investments, providing opportunities for the business communities to enter into investment partnerships.

Currently, the UAE invests over $3 million in Cambodia, compared to $1 million in direct foreign investment from Cambodia.

However, a wide range of opportunities for investment in tourism, logistics, infrastructure and renewable energy are anticipated with the agreement's implementation.

"The UAE-Cambodia Comprehensive Economic Partnership Agreement is a new milestone in our foreign trade agenda that strengthens our growing role in the east-west trade corridor. It will not only contribute to our goal of doubling non-oil foreign trade by 2031 but also expand our presence in the rapidly growing economies of South-East Asia, opening new doors for exporters to reach millions of consumers," said Dr. Al Zeyoudi.

The CEPA guarantees improved access for UAE products to the Cambodian market, covering 92 per cent of customs tariff lines and over 93 per cent of the value of non-oil trade. It also opens up various service sectors in the Cambodian market for UAE businesses.

Now the deal has been signed, both countries will complete the necessary requirements and internal legal procedures for ratification.

The agreement is expected to come into force before the end of the fourth quarter of this year.