On October 26, 2025, the United States and the Kingdom of Cambodia signed an Agreement on Reciprocal Trade. The agreement is intended to “enhance reciprocity in their bilateral trade relationship by addressing tariff and non-tariff barriers;” and seeks to “strengthen their commercial relationship through increased alignment on national and regional economic security matters.” The agreement acknowledges Cambodia’s status as a least developed country. The agreement will next be submitted to each country’s legislative body for ratification.
Key terms of the agreement include:
- Cambodia’s commitment to eliminate tariffs on 100 percent of U.S. industrial goods and U.S. food and agricultural products, based on “staging categories” for their elimination set forth in an Annex to the agreement, with no quotas on imports from the United States unless otherwise accepted by both parties.
- The continuation of U.S. reciprocal tariffs at 19 percent, as set forth in Executive Order 14257 of April 2, 2025, but with tariff exclusions for certain imported products from Cambodia as set forth in Schedule 2 of Annex I to the agreement.
- Bilateral commitment to address Cambodia’s non-tariff barriers, starting with import licensing, the streamlining of regulatory requirements and approvals, the recognition of U.S. sanitary and phytosanitary measures and other measures for food and agricultural products, and an increase in enforcement against notorious markets for counterfeiting and piracy.
- Cambodia’s commitment to addressing and preventing barriers to U.S. agricultural products, starting with U.S. regulatory oversight and acceptance of currently agreed certificates issued by U.S. regulatory authorities.
- Cambodia’s commitment to protecting internationally recognized labor rights, adopting and implementing a prohibition on the importation of goods produced by forced or compulsory labor and strengthening enforcement of its labor laws.
- Cambodia’s commitment to adopting and maintaining high levels of environmental protection, starting with measures to address illegal logging, fisheries subsidies, illegal fishing, and the illegal wildlife trade.
- Cambodia’s commitment to refrain from the imposition of digital services taxes discriminating against U.S. companies and to facilitate digital trade, services, and investment with the United States; starting with an agreement not to impose any condition on U.S. parties to transfer intellectual property or customs duties on electronic transmissions.
- Finalization of bilateral commitment to address intellectual property protection and enforcement, customs and trade facilitation, good regulatory practices, and distortionary behaviors of state-owned enterprises.
- Bilateral commitment to strengthening economic and national security cooperation and to enhancing supply chain resilience by addressing duty evasion, investment security and export controls.
In addition, the United States has agreed to remove the arms embargo on Cambodia, and both agreed to restart bilateral defense exercises last held in 2017.