Cambodia expects bilateral trade relations with the United Kingdom (UK) to improve and exports to the UK to increase following its departure from the European Union (EU), according to trade officials from the country, whose commerce ministry recently said the UK’s market share of Cambodia’s exports was worth more than $1 billion last year.
Cambodia Chamber of Commerce vice president Lim Heng also foresees a steady rise in export of goods, especially garments, to the UK following Brexit.
The United Kingdom departed from the EU on January 31, implying its course of action is now independent of the European Commission’s decision regarding the Everything But Arms (EBA) scheme for Cambodia, according to Cambodian media reports.
The EU is set to announce its decision on EBA for Cambodia on February 12. In the first three quarters of last year, Cambodian exports to international markets totalled $10.9 billion, the National Bank of Cambodia said. The United Kingdom was the fifth largest market, accounting for seven per cent of exports, following the United States, Japan, Germany and China.
British investors have mainly invested in sectors like garments, footwear, electronics and cigarettes. However, Garment Manufacturers Association in Cambodia (GMAC) secretary general Kaing Monika feels the garment sector would remain largely unaffected by Brexit.
