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Cambodia Can Export Travel Goods to US Duty-Free
Cambodia will now be able to export luggage and other travel goods to the United States without paying some American taxes.
The U.S. trade representative, Michael Froman, announced the change this week. The change relates to the new U.S. Generalized System of Preferences, also known as the GSP.
Froman said the new trade preferences should be a big help to Cambodia and other countries that produce travel goods. Currently, the import market for travel goods is valued at $10 billion.
The U.S. Ambassador to Cambodia said the change could open a new market for Cambodian exporters and create thousands of new jobs for Cambodians.
The U.S. government hoped Cambodian manufacturers would use the change to diversify the country's economy and reduce poverty, said Ambassador William Heidt.
Mey Kalyan, a senior adviser to Cambodia's Supreme National Economic Council, said the move was good for the economy.
"When we have the market, I believe that more investors will come to invest in Cambodia," he said. "It will allow our economy to progress, allow the people to have jobs and, more importantly, it will give more added value."
Cambodia exports more than $5 billion every year to its two major textile export markets; they are the United States and European Union.
Keys: 1. A 2.C 3.D