Cambodia’s garment exports grew 16.1 percent in the first half of 2018 from the same period last year, the World Bank said on Thursday, boosted by a trade agreement that allows Cambodia to export travel goods to the United States duty free.
“This is partly supported by the new agreement with the U.S. on travel goods,” said Miguel Martin, the World Bank’s senior country economist in Cambodia.
Cambodia’s apparel manufacturing industry is markedly the biggest employer in the country and exports from this segment account for 10 percent of the nation’s entire economy.
Notably in 2016, Washington extended trade preferences, under changes to the Generalized System of Preferences (GSP), to Cambodia and other least developed countries (LDCs) manufacturing goods such as garments and accessories.
Also, Under the EU’s Everything But Arms (EBA) Act, 47 less developed countries, including Cambodia, enjoy duty-free access to the region. This has also helped Cambodia to register growth.
The year ahead seems to be even better with the holiday season approaching, the orders would be much bigger for the manufacturers at this time of the year.