CCFTA to boost agricultural commodity exports
According to a World Bank report, the Cambodia-China Free Trade Agreement (CCFTA) is expected to boo…According to a World Bank report, the Cambodia-China Free Trade Agreement (CCFTA) is expected to boost agricultural commodity exports. The objective of CCFTA and RCEP is to increase the trade in goods (and services) by reducing and eliminating tariffs and non-tariff barriers.
The CCFTA covers more than 10,800 tariff lines for Cambodia and about 8,500 tariff lines for China. “The CCFTA goes beyond what was offered under the ASEAN-China FTA, covering an additional 340 tariff lines (4 percent of the total), which includes mostly chapters 1 to 10 of Cambodia’s ASEAN Harmonized Tariff Nomenclature, ranging from live animals/animal products to meat, fish, and cereals. Since January 1, 2022, about 98 percent of China’s tariff lines have immediately gone to zero tariff rates. Of the 340 commodities, 95 percent are untaxed,” the report pointed out.
The Chinese tariffs on Cambodia’s exports of cashew nut, banana, mango, longan, and cassava starch decreased from 20 percent to zero percent, thanks to CCFTA. The Chinese tariff on pepper is reduced from 20 percent to zero percent after 10 years. With zero tariff, exports of these agricultural commodities to the Chinese market will increase, the study observed.