News analysis

Modest gains expected from upcoming Cambodia-China free trade agreement

The flaring confrontation between the US and China is putting smaller states in the region in an awkward position. PHOTO: AFP
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BANGKOK - Having dodged the worst of the coronavirus pandemic so far with just 240 infections to date, Cambodia is facing structural economic headwinds.

On Aug 12, tariff exemption on about €1 billion worth of Cambodia's exports to the European Union (EU) will be withdrawn. In October, the Kingdom may also join the bloc's blacklist of countries at risk of money laundering. Cambodia's economy is projected to shrink 1.9 per cent this year.

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