Agreement Between the United States of America and the Kingdom of Cambodia on Reciprocal Trade

10/26/2025

Briefings & Statements

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Agreement Summary

Preamble: Emphasizes shared values such as sovereignty, economic prosperity, and resilient supply chains; reinforces longstanding trade, investment, and cooperation between the U.S. and Cambodia, noting Cambodia’s status as an LDC.
Tariffs and Quotas: Establishes reciprocal tariff rates as detailed in the attached schedules and prohibits Cambodia from imposing quotas on U.S. goods unless mutually agreed.
Non-Tariff Barriers and Related Matters:
- Import Licensing & Technical Regulations: Mandates non-discriminatory, transparent licensing practices and elimination of unnecessary testing or duplicate conformity assessments.
- Agriculture: Guarantees non-discriminatory market access for U.S. agricultural products and science-based sanitary and phytosanitary measures.
- Geographical Indications & Specific Terms: Requires fairness in protection/recognition and prevents restrictions on U.S. goods based on cheese and meat terms.
- Intellectual Property: Enforces robust protections and adherence to international treaties, with strong measures against infringement.
- Services & Regulatory Practices: Prohibits new barriers for U.S. services suppliers and calls for good regulatory practices ensuring transparency and predictability.
- Labor & Environment: Implements stringent labor rights (including prohibition of forced labor) and environmental protection measures that prevent trade distortion.
- Customs & Trade Facilitation: Requires digital, paperless border processing and consistent tariff classifications, while enhancing dispute resolution mechanisms.
Digital Trade and Technology:
- Digital Services Taxes: Prohibits discriminatory digital taxes on U.S. companies.
- Facilitation and Agreements: Promotes free data transfer, digital trade facilitation, and mandates U.S. consultation before entering digital trade agreements that could affect U.S. interests.
- Market Entry Conditions: Prevents requirements for technology transfer or forced access to U.S. proprietary knowledge as a condition for market entry.
- Customs Duties: Bars customs duties on electronic transmissions and supports a multilateral moratorium.
Rules of Origin: Allows the Parties to set measures ensuring that the benefits of the Agreement accrue substantially to them, with Cambodia empowered to implement necessary rules for U.S. goods.
Economic and National Security:
- Complementary Actions: Ensures reciprocity in responses to third-country trade restrictions and addresses unfair practices that may affect U.S. exports.
- Export Controls and Sanctions: Calls for cooperation on regulating national security–sensitive technologies and aligning export controls with U.S. standards.
- Additional Measures: Includes streamlining defense trade and enforcing measures to combat duty evasion; provides for termination if new agreements threaten U.S. economic or national security.
Commercial Considerations and Opportunities:
- Investment: Facilitates U.S. investment in critical sectors in Cambodia while ensuring reciprocal job-creating opportunities in the United States.
- Commercial Practices: Requires Cambodian SOEs to operate on commercial terms without discriminating against U.S. goods or services and mandates investigations into any distortive subsidies.
- Purchasing Obligations: Commits Cambodia to preferential purchasing of originating U.S. goods as detailed in the annexes.
Implementation, Enforcement, and Final Provisions:
- Annexes, amendments, and footnotes form an integral part of the Agreement.
- Provides for consultation, enforcement actions, termination with notice, and specifies entry-into-force procedures.

Risks & Considerations

The agreement between the United States and Cambodia on reciprocal trade could impact Vanderbilt University by influencing the broader economic environment in which the university operates. Changes in trade policies can affect the availability and cost of goods and services, which may indirectly impact university operations and procurement.
Intellectual property protections outlined in the agreement may have implications for research and innovation at Vanderbilt. Strengthened IP protections could encourage more collaborative research projects with international partners, but may also require compliance with new regulations.
The focus on digital trade and technology, including the prohibition of digital services taxes, could benefit Vanderbilt’s digital initiatives and collaborations by ensuring a more open and competitive digital marketplace.
Labor and environmental provisions in the agreement may influence the university’s partnerships and supply chain decisions, particularly if there are changes in labor rights or environmental standards that affect suppliers or collaborators.

Impacted Programs

Vanderbilt’s Research and Innovation Programs may need to adapt to new intellectual property standards and explore opportunities for international collaboration under the strengthened IP framework.
The Office of Digital Strategy could leverage the digital trade provisions to enhance digital services and partnerships, potentially expanding the university’s reach and impact.
Environmental and Labor Studies programs may find new areas of research and advocacy as a result of the agreement’s focus on labor rights and environmental protections.

Financial Impact

The agreement’s impact on tariffs and trade barriers could affect the cost of imported goods and services used by the university, potentially influencing budget allocations and financial planning.
Opportunities for increased U.S. investment in Cambodia may open new avenues for funding and partnerships, particularly in sectors related to critical minerals and energy resources.
Changes in the regulatory environment for digital trade could lead to cost savings and efficiency improvements in the university’s digital operations and collaborations.

Relevance Score: 3 (The agreement presents moderate risks and opportunities, particularly in compliance and international collaboration.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor developments in U.S.-Cambodia trade agreements, particularly those related to intellectual property and digital trade, to identify potential impacts on research collaborations and technology transfer agreements. This will help ensure compliance with new regulations and leverage opportunities for international partnerships.
Vanderbilt’s Center for International Business should explore opportunities for collaboration with Cambodian institutions, focusing on areas such as digital trade and technology, to enhance the university’s global presence and foster cross-border educational and research initiatives.
Vanderbilt’s Legal Affairs Office should review the implications of the agreement’s intellectual property and labor rights provisions to ensure that the university’s policies align with international standards and protect its interests in global collaborations.
Vanderbilt’s Environmental and Sustainability Studies Program should assess the environmental provisions of the agreement to identify opportunities for research and advocacy in sustainable development and environmental protection in collaboration with Cambodian partners.
Vanderbilt’s Agricultural Research Center should evaluate the agreement’s agricultural provisions to explore potential research collaborations and market access opportunities for U.S. agricultural goods, enhancing the university’s role in global agricultural innovation.

Opportunities

The agreement presents an opportunity for Vanderbilt’s Business School to develop case studies and research projects on international trade agreements, focusing on the economic and regulatory impacts of the U.S.-Cambodia trade relationship.
Vanderbilt’s Digital Innovation Center can capitalize on the digital trade provisions by fostering partnerships with Cambodian tech companies and exploring joint ventures in digital services and cybersecurity.
The focus on labor rights and environmental protections offers Vanderbilt’s Law School an opportunity to engage in policy analysis and advocacy, contributing to the development of fair labor practices and sustainable trade policies.
By engaging with Cambodian educational institutions, Vanderbilt’s International Programs Office can expand student exchange programs and collaborative research initiatives, enhancing the university’s global academic network.

Relevance Score: 3 (The agreement requires some adjustments to processes and procedures to align with new international trade and regulatory standards.)

Average Relevance Score: 2.2

Timeline for Implementation

Within five years of the Agreement’s entry into force (as specified in Article 2.10 for implementing technology solutions for full pre-arrival processing, paperless trade, and digitalized procedures).

No other enforceable directive timelines were identified within the text that affect implementation, so the five-year timeline is the shortest.

Relevance Score: 1

Impacted Government Organizations

United States – Executive Branch (The White House): As the agreement is issued by the U.S. President and sets trade and economic policy directions, the White House is a key driver in its formulation and implementation.
Export-Import Bank of the United States (EXIM Bank): The agreement explicitly notes the use of EXIM Bank mechanisms to support U.S. investment financing in critical sectors in Cambodia.
U.S. International Development Finance Corporation (DFC): The DFC is referenced as a potential partner with the EXIM Bank in supporting U.S. investments, illustrating its role in facilitating international economic engagement.
U.S. Department of Commerce Bureau of Industry and Security: This agency is implicated through directives regarding export controls, technology, and national security sensitive transactions.
U.S. Department of the Treasury (including its Office of Foreign Assets Control functions): The text alludes to cooperation on sanctions, export controls, and measures to counter unfair trade practices which involve Treasury oversight.
Kingdom of Cambodia – Governmental Authorities: The agreement imposes numerous obligations on Cambodia ranging from tariff application and import regulation to implementing good regulatory practices, compliance with labor and environmental standards, and cooperation on export controls, thereby engaging multiple Cambodian government agencies and SOE supervisory authorities.

Relevance Score: 3 (Six or more governmental organizations or directorates are directly impacted by the agreement’s provisions across both the United States and Cambodia.)

Responsible Officials

N/A – The text, as an international trade agreement, sets forth obligations for the respective governments without specifying individual or agency officials for implementing the directives.

Relevance Score: 1 (The agreement imposes broad government obligations without designating specific officials, thereby less directly affecting individual implementers.)