Prime Minister Hun Manet addresses the inauguration of the Morodok Techo Flyover in Phnom Penh on April 7. FN
As part of Prime Minister Hun Manet’s plans to negotiate the last-minute 49 per cent blanket tariffs placed on Cambodian imports by US President Donald trump, two senior officials are now on standby for a rapid departure to the US. Ahead of the expected US announcement that negotiations are open, Cambodia has proposed reducing tariffs on 19 US import lines, equivalent to 85 categories.
As he addressed the April 7 inauguration of the Morodok Techo Flyover, Manet shared that Deputy Prime Minister Sun Chanthol, first vice-president of The Council for the Development of Cambodia (CDC), and Minister of Commerce Minister Cham Nimul are ready to set off for the US.
Manet explained that his seventh-mandate government has prepared its response to the US tariffs two months before Trump officially announced the 49% rate, on April 2. Ahead of the announcement, the government proactively assessed the affected goods, tariff levels and products which were likely to be subject to taxation.
According to the prime minister, the Kingdom has a total of 1,868 tariff lines, some of which cover multiple products. Of these, 211 apply to US goods which can be imported into Cambodia tax-free, such as mobile phones.
The highest tariff categories on US goods, including alcohol, are among those which his government has proposed reducing from 35 per cent to 5.
Manet explained that the 19 tariff lines Cambodia has proposed lowering for US goods cover approximately 85 products.
“I want to inform my compatriots that just because I haven’t posted anything on Facebook, it doesn’t mean I haven’t been working on this. In the 41 hours after the US announced the new tariffs, we thought very carefully, and considered our first two steps. Once we enter negotiations, we will know what to do next, and have already prepared a working group for step two,” he said.
The 41-hour period was the time which elapsed between the announcement of the tariffs and the release of two letters to the US requesting negotiations. Manet and commerce minister Nimul each released a copy of their respective letters to the US administration.
“We worked collectively, with individuals taking responsibility. I issue orders decisively, but I refuse to make hasty decisions without careful consideration because this concerns the future of our nation,” explained the prime minister.
He also criticised former opposition leaders Sam Rainsy and Mu Sochua, who claimed Cambodia imposes a 97 per cent tariff on US goods and urged Manet to negotiate directly with the US. Manet claimed that Rainsy has made no effort to help the Kingdom during its challenges.
“If you want to criticise me about something, at least get your facts right. If you have tried to order me and the government to drop a 97 per cent tariff, you clearly don’t even know what you’re talking about. Where does this 97 per cent come from? If I asked what goods this applies to, you couldn’t answer it right away because there are no such tariff rates,” he said.
He also commented on the role of the opposition, suggesting that even when in disagreement, there should be times of unity when the country faces risks and its people suffer.
“Despite the combative culture of some opposition members, they must set aside this behaviour when the Kingdom is at risk and our people are facing difficulties. They should abandon this position and unite in a single direction,” he said.
“Look at other countries, look at Thailand — when their country faces issues affecting the interests of workers, they come together to negotiate and seek understanding,” he added.
He also spoke highly of Canada.
“When their country faced tariffs, both the opposition and ruling parties worked together — no one attacked each other,” he said.
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), explained that the US appears to have imposed tariffs on various countries to create an opportunity to renegotiate terms of trade, with the aim of securing better trade conditions for American goods.
In Cambodia’s case, he believed these negotiations could benefit the Kingdom’s citizens, as certain US goods may become cheaper in Cambodia, depending on the outcome of the talks.
“The US is a major market for us. Therefore, negotiation is the only way to expand trade volume. It really is a two-way street,” he said.
He suggested that Cambodia and the US should negotiate advantageous tariffs on goods which are in high demand, and also encouraged discussions that may lead to a free trade agreement between the two nations.
