Cambodia-China FTA: Unlocking ‘China-plus Cambodia Concept’ on the Global Value Chains
- Amidst the Covid-19 pandemic and despite the EU’s partial withdrawal of EBA, Cambodia still manages to conclude and sign its comprehensive and modern bilateral Free Trade Agreement (FTA) with China.
- By comparing with ASEAN-China agreements on trade in goods, trade in services and investment signed separately, Cambodia-China FTA has been consolidated into a single package of agreement that allows a smooth transaction of trade, business and investment upon the entry into force of the agreement.
- Cambodia-China FTA is an opened door for Cambodia to obtain about 98% of the total market access of the world’s second largest economy and the most populous country in the world, while only liberalized 90% of its total market access for China.
- With a complimentary comparative advantage, Cambodia-China FTA has established the China-plus Cambodia concept on the global value chains that is essentially serving the interests of the two countries.
The article aims to examine the significance of Cambodia-China FTA, the implications of Cambodia-China FTA on the potential “China-plus Cambodia” concept in terms of global value chains, and its significance for policy discussion.
* The article was originally published at Asian Vision Institute.
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