Illustrative image (Source: https://www.phnompenhpost.com/) Phnom Penh (VNA) – Cambodia’s export of travel goods surged in the January-September period of this year to 385 million USD, mostly thanks to tax privileges they received from the US under its Generalised System of Preferences (GSP).
According to the Phnom Penh Post, an amendment to the GSP that went into effect in July 2016 removed US customs tariffs on Cambodian-made travel products such as luggage, backpacks, handbags and wallets.
The items, which previously faced tariffs of between 4.5 and 20 percent, now enter the US duty-free under the expanded programme.
Under the programme, approximately 5,000 products from 122 beneficiary developing countries and territories – including 43 least-developed countries – are eligible for duty-free export to the US.
The US’ and the EU’s preferential trade schemes have been very beneficial to the Kingdom’s footwear and travel goods exports, Ministry of Commerce secretary of state Sam Sereirath was quoted as saying.
Garment Manufacturers Association in Cambodia chairman Van Sou Ieng said that there has been a large increase in investment flow into the travel goods sector now since Cambodia obtained market access under the GSP to the US, adding that this is a good sign.
Data from the Ministry of Economy and Finance showed that in 2016, Cambodian goods exported under the GSP scheme was 50 million USD. Last year, the figure went up dramatically to 400 million USD.
According to the International Labour Organisation, Cambodia remained among the top 10 footwear exporters, with its exports valued at more than 1 billion USD last year, a 19 percent increase from 2017.
Cambodia’s main export markets for shoes are the EU (46 percent), the US (17 percent), Japan (12 percent) and Canada (5 percent)./.
