U.S. and Cambodia Reach Framework for Reciprocal Trade Agreement

Trade Update • Oct. 27, 2025

Key Points

• The United States and Cambodia signed a new Agreement on Reciprocal Trade to expand market access and strengthen economic ties.
  
• Cambodia will eliminate tariffs on 100% of U.S. industrial and agricultural goods.
  
• The United States will maintain a 19% reciprocal tariff rate on Cambodian goods and grant zero tariffs on select items listed under Annex III of Executive Order 14346.
  
• The agreement addresses non-tariff barriers, digital trade, customs, intellectual property, and labor and environmental protections.
  
• Both sides will enhance supply chain resilience and cooperate on export controls, national security, and duty evasion.

The U.S. and the Kingdom of Cambodia have reached an Agreement on Reciprocal Trade to deepen bilateral economic cooperation and provide greater market access for both countries. The agreement builds on the 2006 U.S.–Cambodia Trade and Investment Framework Agreement, which focuses on tariff removal, non-tariff reform, and stronger alignment on trade, labor, and environmental standards.

Once implemented, the agreement is expected to open new export opportunities for U.S. businesses, particularly in agriculture, manufacturing, digital trade, and critical minerals.

Tariff and Market Access Commitments

• Cambodia’s commitments:
  
  • Eliminated tariffs on 100% of U.S. industrial goods and agricultural exports.
    
  • Prohibited import quotas on U.S. goods unless mutually agreed.
• U.S. commitments:
  
  • Maintains a 19% reciprocal tariff rate on Cambodian goods under Executive Order 14257 (April 2, 2025).
  • Grants zero tariffs on selected Cambodian products identified in Annex III of Executive Order 14346 (September 5, 2025).

Reducing Non-Tariff Barriers

Cambodia agreed to modernize its import and regulatory systems to improve trade transparency and reduce administrative delays. Key measures include:

• Ending restrictive import licensing practices.
• Accepting U.S. technical standards and conformity assessments for products.
• Removing duplicative testing requirements and technical barriers to trade.
• Recognizing U.S. sanitary and phytosanitary (SPS) measures for agricultural goods.

These reforms will make it easier for U.S. exporters to access the Cambodian market without facing non-scientific or discriminatory technical requirements.

Agricultural and Food Trade

Cambodia will provide non-discriminatory access for U.S. agricultural exports and ensure that SPS measures align with international standards.
The agreement also protects the use of common cheese and meat terms (e.g., “cheddar,” “ham”) to prevent restrictions based solely on naming conventions.

Customs, Digital Trade, and Technology

To enhance trade facilitation and modernization:

• Cambodia will digitize customs systems and implement paperless trade within five years.
• It will maintain transparent tariff classifications and improve advance ruling procedures.
• Cambodia will not impose digital services taxes or customs duties on electronic transmissions.
• Both countries will promote cross-border data flows and cybersecurity cooperation.
  

Economic and Security Cooperation

The agreement includes provisions for coordination on export controls, sanctions, and investment transparency. Cambodia will align with U.S. measures addressing unfair trade practices and cooperate to prevent duty evasion and illegal transshipment.

The United States may also consider the agreement’s contribution to national security when making determinations under Section 232 of the Trade Expansion Act of 1962.

What Happens Next?

Both governments will complete domestic procedures for the agreement to enter into force. Once effective, the U.S.–Cambodia Reciprocal Trade Agreement will expand trade flows, improve supply chain resilience, and enhance regulatory cooperation across multiple sectors.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.