RCEP and Its Impact on Cambodia’s Export Markets

The Regional Comprehensive Economic Partnership (RCEP), the world’s largest free trade agreement, has significantly influenced Cambodia’s export landscape since its implementation. Comprising 15 Asia-Pacific nations, including the 10 ASEAN countries and key partners like China, Japan, and South Korea, RCEP aims to reduce trade barriers and foster economic integration among member states

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Cambodia’s Export Growth Under RCEP

Since joining RCEP, Cambodia has experienced notable growth in its exports to member countries. In 2024, exports to RCEP nations reached $9.06 billion, marking a 13% increase from the previous year . This upward trend continued into the first 11 months of 2024, with exports totaling $8.25 billion, up 14.4% year-on-year . These figures underscore the positive impact of RCEP on Cambodia’s trade dynamics.Khmer Times+3Amwal Al Ghad+3Cambodianess+3en.ndrc.gov.cn

Key Export Destinations and Products

Cambodia’s primary RCEP trading partners include China, Vietnam, Thailand, Japan, and Singapore . The country’s export portfolio to these nations is diverse, encompassing garments, footwear, agricultural products, and electronics. Notably, rice exports have surged, with $209 million generated in the first four months of 2025, largely attributed to trade deals with China and RCEP .en.ndrc.gov.cn+1Vietnam National Trade Repository+1Evrim Ağacı

Benefits of RCEP for Cambodia

1. Tariff Reductions: RCEP aims to eliminate tariffs on approximately 92% of goods over the next two decades, enhancing market access for Cambodian products .Thomson Reuters: Clarifying the complex+1China Briefing+1

2. Simplified Customs Procedures: The agreement introduces streamlined customs processes, facilitating faster clearance of goods, which is particularly beneficial for perishable items .China Briefing

3. Investment Opportunities: RCEP’s framework encourages foreign direct investment, with Cambodia witnessing increased investments, especially from China, bolstering its manufacturing sector .State Council of China

4. Economic Diversification: The agreement supports Cambodia’s efforts to diversify its economy by promoting higher value-added industries and integrating into regional value chains .

Challenges and Considerations

Despite the benefits, Cambodia faces challenges in fully capitalizing on RCEP:

• Trade Deficits: While exports have grown, imports from RCEP countries have increased at a faster rate, leading to a trade deficit. In 2024, imports from RCEP nations totaled $25.46 billion, up 19.6% from the previous year .en.ndrc.gov.cn

• Need for Structural Reforms: To maximize RCEP’s benefits, Cambodia must implement structural reforms to enhance competitiveness and move up the value chain .ERIA

• Awareness and Capacity Building: Ensuring that local businesses, especially SMEs, are aware of and can navigate RCEP’s provisions is crucial for inclusive economic growth .

Future Outlook

RCEP presents a significant opportunity for Cambodia to strengthen its position in regional and global markets. By addressing existing challenges and leveraging the agreement’s provisions, Cambodia can enhance its export performance, attract investments, and achieve sustainable economic growth.

Further Reading:

• Cambodia’s exports to RCEP countries up 14 percent

• How RCEP benefits Cambodia in the long term

• Potential Impact of RCEP and Structural Transformation on Cambodia

• Cambodian officials, experts discuss RCEP benefits