Trade between Cambodia and the UK has seen positive growth, with Cambodia's exports to the UK increasing by more than 25% in the first two months of 2024 compared to the same period last year [13dc733c]. The UK is now Cambodia's eighth-largest trading partner [13dc733c]. This growth can be attributed to the benefits Cambodia has been receiving from the UK's Developing Countries Trading Scheme (DCTS), which provides tariff- and quota-free access to the UK market since April last year [13dc733c]. Between January and February, Cambodia exported goods worth $135.8 million to the UK, marking a 25.1% increase from the same period in 2022 [13dc733c]. However, total imports from the UK decreased by 47.9% to $6.85 million during the same period [13dc733c]. Despite this decrease in imports, bilateral trade between Cambodia and the UK reached $142.67 million, resulting in a trade surplus of $128.97 million for Cambodia [13dc733c]. The increase in exports to the UK reflects an improvement in the global economy [13dc733c]. Textiles and agricultural products are the main goods imported by the UK from Cambodia [13dc733c].
Cambodia's garment, footwear, and travel goods (GFT) exports have also shown positive growth. In the first quarter of 2024, Cambodia exported $2,941 million worth of GFT products, marking a 20% increase from the same period last year [4f7a2b4d]. Apparel and textiles accounted for $2,167 million of the exports, representing a 23% increase [4f7a2b4d]. Footwear exports were $346.3 million, up 6.9%, and travel goods exports were $427.9 million, up 16.6% [4f7a2b4d]. The GFT sector is projected to contribute to Cambodia's economic growth of 5.8% this year [4f7a2b4d]. The sector consists of 1,680 factories and branches, employing 918,000 workers [4f7a2b4d]. In 2023, Cambodia's GFT exports declined by 12% due to a slowdown in the main markets, including the United States, Europe, and the UK [4f7a2b4d]. However, in 2022, Cambodia exported $12.2 billion worth of products to the US, highlighting the significance of the GFT industry as Cambodia's biggest foreign exchange earner [4f7a2b4d] [13dc733c].
The UK Minister for Indo-Pacific, Anne-Marie Trevelyan, visited Cambodia from March 2-4 to discuss cooperation in trade, economic development, and education [13dc733c]. This visit is significant as it is the first ministerial visit from the UK since Prime Minister Hun Manet's government came to power in August last year [13dc733c]. The visit further strengthens the trade relations between the UK and Cambodia, and highlights the UK's commitment to fostering economic ties with Cambodia [13dc733c].