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.