Cambodia and Canada Bet on a Free Trade Agreement and New Cooperation Axes
- Brèves Éco
- 10 hours ago
- 3 min read
Cambodia and Canada seek to further strengthen their economic relationship, betting on an ASEAN–Canada free trade agreement and new cooperation axes ranging from digital technology to food security.
Discussions focused both on the bilateral relationship and the regional framework, with a particular emphasis on the future ASEAN–Canada Free Trade Agreement (ACAFTA).
ACAFTA, Strategic Pivot of the Relationship
Both parties emphasized the need to reach a "substantial" agreement by 2026, in line with the timetable set by the partners. For Cambodia, ACAFTA is a major lever to diversify its outlets beyond traditional markets and consolidate preferential access to the Canadian market, already facilitated by the Canadian initiative of duty-free access for least developed countries.
Long Kemvichet reiterated Cambodia's "unwavering" support for the negotiation process, seeing in this agreement an instrument for modernizing the Cambodian economy, notably through new disciplines on trade in services, digital technology, and investment.
Already Dynamic Trade, in Search of New Drivers
Canada is among Cambodia’s main export markets, with merchandise trade estimated at about 2.4 billion Canadian dollars in 2024, continuously increasing in recent years. In the first nine months of 2025, bilateral trade exceeded 1 billion US dollars, driven by Cambodian exports of clothing, travel goods, shoes, bicycles, and electronic components.
Conversely, Cambodia mainly imports electronic products, vehicles, and various Canadian manufactured goods, still with a significant surplus for the Kingdom, which encourages Ottawa to further promote investments and the presence of Canadian companies in the Cambodian market.
From Mines to Digital: Cooperation on Multiple Levels
The economic relationship is framed within a broader political context, where Canada has long been involved in supporting Cambodia’s development, notably through humanitarian action and demining, with the goal of a "mine-free Cambodia." Meanwhile, Ottawa's Indo-Pacific strategy makes ASEAN a priority partner, and Cambodia positions itself as an entry point to the regional market, supported by a new investment law and the government's "Pentagonal Strategy."
This dynamic was illustrated in 2025 by an important Canadian trade mission to Phnom Penh, led by Minister Mary Ng and bringing together nearly a hundred companies and institutions, exploring opportunities in renewable energy, agro-industry, environment, and technologies.
New Cooperation Fields: AI, Energy, E-commerce
At the meeting on November 20, Cambodian and Canadian officials identified several priority areas to deepen cooperation: trade in goods and services, food security, e-commerce, energy, digitization, and artificial intelligence.
Food security and agro-industry offer a natural area of collaboration, with Canada having cutting-edge expertise in sustainable agriculture and processing technologies, while Cambodia seeks to upgrade its agricultural exports.
E-commerce and digitization align with the Kingdom’s intention to develop a regional digital economy, relying on Canadian experience in regulation, logistics, and fintech.
Clean energy and green technologies represent another pillar, at the crossroads of climate objectives and Cambodia’s need for resilient and efficient infrastructure.
Artificial intelligence and digital services related to education, health, and the financial sector open a new generation of economic and technological partnerships.
A Relationship Carried by the Francophonie and Diaspora
By 2026, the hosting of the Francophonie Summit in Phnom Penh should boost exchanges between Cambodia and Canada, especially with Quebec and Francophone provinces.
The Cambodian diaspora in Canada, often trilingual (Khmer, French, English), already plays a role as a cultural and entrepreneurial bridge, facilitating understanding of markets, standards, and business practices.
Chambers of commerce and representation offices—such as those of the Cambodia Chamber of Commerce in Montreal and Toronto—contribute to structuring this relationship by assisting companies from both countries in identifying partners, prospecting, and risk management.
Toward a More Balanced and Sustainable Partnership
Beyond trade volumes, Phnom Penh and Ottawa display the ambition for a more balanced partnership based on productive investments, technology transfers, and upgrading the skills of the Cambodian workforce. The stated priorities—sustainability, digital technology, innovation, food security—reflect a convergence of Cambodia’s development goals and Canada’s Indo-Pacific strategy.
If ACAFTA is concluded on schedule, Cambodia could become one of the most dynamic beneficiaries of the increased opening of the Canadian market to ASEAN, while Canada would gain an additional strategic foothold in the heart of Southeast Asia, in a Francophone environment where it has historic and cultural assets.