Joint Statement on United States-Cambodia Agreement on Reciprocal Trade

10/26/2025

Briefings & Statements

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Action Summary

Agreement Purpose: Establish a Joint U.S.-Cambodia Agreement on Reciprocal Trade to strengthen bilateral economic ties and expand market access for exporters from both countries.
Tariff Commitments:
- Cambodia: Eliminates tariffs on 100% of U.S. industrial goods and food/agricultural products, a commitment that has already been implemented.
- United States: Maintains a 19% tariff rate on Cambodian-origin goods per Executive Order 14257, with selected products (as defined in EO 14346 Annex III) set to receive a 0% tariff rate.
Non-Tariff and Regulatory Measures: Both nations agree to tackle non-tariff barriers affecting bilateral trade by addressing import licensing, streamlining regulatory requirements and approvals, recognizing U.S. sanitary and phytosanitary measures, and increasing enforcement against counterfeiting and piracy.
Labor and Environmental Standards:
- Labor: Cambodia commits to protecting internationally recognized labor rights, prohibiting the importation of goods produced by forced or compulsory labor, and bolstering labor law enforcement.
- Environment: Cambodia agrees to adopt and enforce high levels of environmental protection, addressing issues such as illegal logging, fisheries subsidies, illegal fishing, and illegal wildlife trade.
Trade, Digital, and Investment Commitments: The Agreement includes provisions on digital trade, services, investment, intellectual property protection, customs and trade facilitation, good regulatory practices, and measures to counteract distortions by state-owned enterprises.
Economic and National Security Cooperation: Enhanced collaboration to improve supply chain resilience, address duty evasion, and ensure investment security and stringent export controls, with consideration of national security implications under Section 232 of the Trade Expansion Act.
Commercial Collaboration: Acknowledges a forthcoming commercial deal between Air Cambodia and Boeing to support the development of Cambodia’s aviation ecosystem.
Implementation Steps: Both parties will complete necessary domestic formalities before the Agreement enters into force.

Risks & Considerations

The Agreement on Reciprocal Trade between the United States and Cambodia could lead to increased competition for U.S. industries, including those in Tennessee, where Vanderbilt University is located. This may affect local businesses and industries that are part of the university’s economic ecosystem.
There is a potential risk of increased scrutiny on labor rights and environmental protection, which could impact industries and research areas associated with Vanderbilt University, particularly if they are involved in international collaborations or supply chains.
The commitment to address non-tariff barriers and enhance regulatory practices may require adjustments in compliance and operational strategies for businesses and research entities affiliated with Vanderbilt University.
Vanderbilt University may need to consider how changes in trade dynamics and economic relationships could affect its international partnerships, particularly in research and development sectors.

Impacted Programs

Vanderbilt’s Owen Graduate School of Management may see increased demand for expertise in international trade and economic policy, providing opportunities for research and collaboration with government and industry partners.
The Vanderbilt Institute for Global Health could be impacted by changes in regulatory practices and international collaborations, particularly in areas related to food and agricultural products.
Vanderbilt’s Environmental and Sustainability Studies programs may benefit from increased focus on environmental protection and labor rights, offering opportunities for research and advocacy.
The Office of International Affairs at Vanderbilt may need to adjust its strategies to align with new trade agreements and international partnerships.

Financial Impact

The elimination of tariffs on U.S. goods exported to Cambodia could open new markets for businesses and industries associated with Vanderbilt University, potentially leading to increased funding and collaboration opportunities.
Changes in trade dynamics may affect the financial landscape for research grants and partnerships, particularly in areas related to international trade, economic policy, and environmental protection.
Vanderbilt University might experience shifts in its funding opportunities, particularly if federal and international grants prioritize trade and economic cooperation initiatives.
There may be increased opportunities for Vanderbilt to secure funding for research and development in areas related to trade, economic policy, and international collaboration.

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

Key Actions

Vanderbilt’s Office of Global Strategy should explore opportunities for collaboration with Cambodian educational institutions and industries, particularly in areas related to trade, digital services, and environmental protection. This could enhance Vanderbilt’s global presence and create new avenues for research and student exchange programs.
The Vanderbilt Center for International Business should analyze the implications of the U.S.-Cambodia trade agreement on regional economic dynamics and identify potential research opportunities in trade policy, labor rights, and environmental standards. This analysis can inform policy recommendations and contribute to academic discourse on international trade agreements.
Vanderbilt’s School of Engineering could leverage the agreement’s focus on supply chain resilience and innovation to develop partnerships with Cambodian industries, particularly in aviation and technology sectors. This could lead to joint research projects and innovation initiatives that benefit both parties.
The Vanderbilt Law School should consider offering courses or seminars on international trade law and policy, focusing on the legal frameworks and implications of reciprocal trade agreements. This would prepare students for careers in international law and policy-making.
Vanderbilt’s Environmental and Sustainability Studies Program should engage in research and advocacy related to Cambodia’s commitments to environmental protection and labor rights. By collaborating with Cambodian counterparts, the program can contribute to global efforts in addressing environmental and labor challenges.

Opportunities

The agreement presents an opportunity for Vanderbilt’s Owen Graduate School of Management to develop case studies and research on the economic impacts of reciprocal trade agreements. This could enhance the school’s curriculum and provide students with real-world insights into international business strategies.
Vanderbilt can capitalize on the digital trade and intellectual property commitments by fostering innovation and entrepreneurship initiatives that align with the agreement’s objectives. This could include incubator programs and partnerships with Cambodian tech startups.
The focus on labor rights and environmental protection offers an opportunity for Vanderbilt’s Human and Organizational Development Program to engage in cross-cultural research and training programs that promote ethical business practices and sustainable development.
By hosting conferences and workshops on the implications of the U.S.-Cambodia trade agreement, Vanderbilt can position itself as a thought leader in international trade and diplomacy, attracting scholars, policymakers, and industry leaders to engage in meaningful dialogue.

Relevance Score: 3 (The agreement presents opportunities for some adjustments in Vanderbilt’s global strategy and academic programs to align with new international trade dynamics.)

Average Relevance Score: 3

Timeline for Implementation

“In the coming weeks” – The domestic formalities by both the United States and Cambodia are to be completed prior to the Agreement entering into force.

Relevance Score: 5

Impacted Government Organizations

Office of the United States Trade Representative (USTR): As the lead agency on negotiating and implementing U.S. trade agreements, USTR will play a key role in executing the provisions of this reciprocal trade agreement.
Department of Commerce: This department is central to export promotion and trade policy, and will be involved in monitoring U.S. industrial and agricultural exports as well as enforcing tariff adjustments.
U.S. Department of Agriculture (USDA): Given the emphasis on market access for food and agricultural products, USDA is likely to be involved in overseeing sanitary and phytosanitary measures and related trade standards.
Department of Labor: With Cambodia’s commitments regarding labor rights and prohibiting goods produced by forced or compulsory labor, the Department of Labor may be engaged in ensuring compliance and protecting American workers.
Environmental Protection Agency (EPA): Cambodia’s obligations to enforce high levels of environmental protection will call for coordination with EPA to align environmental standards and address related trade measures.
U.S. Customs and Border Protection (CBP): As customs and trade facilitation measures are a component of the agreement, CBP will likely be involved in implementing streamlined regulatory approvals and efficient border processes.
Department of State: The national security and diplomatic dimensions of the agreement, including considerations under the Trade Expansion Act and export controls, will touch on the responsibilities of the Department of State.

Relevance Score: 3 (Six to ten Federal Agencies are impacted by the agreement.)

Responsible Officials

N/A – The text is a bilateral statement that outlines trade commitments but does not designate any specific official or agency to execute implementation directives.

Relevance Score: 1 (Directives are outlined without assigning responsibilities to any particular officials.)