Economy: End of the 1st round of negotiations between Cambodia and the USA

Cambodia and the United States have concluded the first round of negotiations on a reciprocal trade agreement, held May 13-15, 2025 in Washington, D.C. The discussions were characterized by “frank and constructive exchanges, reflecting a mutual commitment to strengthening bilateral trade and investment relations.”

The Cambodian delegation was led by H.E. Sun Chanthol, First Vice-President of the Council for the Development of Cambodia, and H.E. Cham Nimul, Minister of Commerce.

They met with the US team led by Sarah Ellerman, Deputy Trade Representative for Southeast Asia and the Pacific. Both sides held in-depth discussions on the draft agreement, exploring ways to strengthen cooperation and address trade imbalances.

The discussions are taking place against a difficult backdrop, with Cambodia facing reciprocal tariffs of 49% imposed by the United States, the highest among ASEAN countries. This tariff, based on the 2024 bilateral trade imbalance, has raised concerns about its potential impact on exports, production chains and employment in Cambodia.

Prime Minister Hun Manet stressed Cambodia's readiness to “engage in good-faith negotiations to ensure fair and balanced trade relations”. He stressed the complexity of the discussions and the importance of achieving results that protect mutual interests and promote a favorable investment environment for US companies operating in Cambodia.

The two governments agreed to continue this cooperative momentum with a second round of negotiations scheduled for the first week of June 2025 in Washington, D.C. The ongoing dialogue aims to “build a mutually beneficial economic partnership that supports sustainable growth and deeper integration between the two nations.”

This first round marks an important milestone in Cambodia-US trade relations, signaling the willingness of both sides to engage openly and constructively to resolve outstanding issues and strengthen bilateral economic ties.