FTA may boost Cambodia's apparel exports to South Korea next year

The CKFTA will 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. South Korea’s National Assembly recently ratified the FTA which was signed in October last year. Cambodia had ratified the agreement much earlier.

According to Fibre2Fashion’s market insight tool TexPro, Cambodia had exported apparel worth $187.650 million in 2019 to South Korea, but the value of exports declined to $169.716 million in 2020 due to the COVID-19 disruption. The export improved last year but could not fully recover when the shipment touched $167.151 million. This year, Cambodia registered exports of $128.860 million in the first eight months.

On a monthly basis, Cambodia’s outbound shipment of apparel to south Korea gained in July 2022 to $18.630 million and further improved to $19.422 million in August. The monthly export remained below $12 million in April, May and June this year.

As per TexPro, South Korea is a very minor market for Cambodia’s apparel exports. The eastern nation is currently positioned at 13^th place in terms of apparel exports from Cambodia. South Korea accounted for mere 1.51 per cent ($167.151 million) out of Cambodia’s total apparel exports of $11.102 billion in 2021.

ALCHEMPro News Desk (KUL)