Officials of the two countries early this week agreed to conduct a feasibility study into the creation of an FTA between the nations.
Chang Hoon Lee, managing director of RoK exporter Hyundai Agro, said the move is a positive development. A free-trade pact will boost trade between the countries and bring more investments into Cambodia, he noted.
“Under an FTA, tariffs to export mangoes will likely decrease, which means customers can buy good quality mangoes at a cheaper price,” he told Khmer Times.
Cambodian mangoes exported to the East Asian nation are subject to a 30 percent tariff, but Lee said he expects the tax will reach zero percent in the next five years.
The RoK is the biggest investor in Cambodia’s agricultural sector, according to Lee, who said the FTA will attract even more investors from the East Asian nation.
“This investment could expand into more sectors, such as heavy industries and the manufacturing of plastic, automobile parts, paper, and steel.”
Cambodia’s Ministry of Commerce said the FTA with the RoK will help expand and boost trade ties between the countries.