A Stronger Cambodia Is Benefiting the United States—75 Years On | Opinion

Seventy-five years after Cambodia and the United States established diplomatic relations, developments along our border with Thailand are a reminder that peace is never guaranteed. It must be actively maintained through diplomacy with regional partners and major powers, alongside a shared commitment to open trade. The United States is exceptionally well-positioned to support Cambodia’s security and growth, and to benefit greatly from both.

Once scarred by war and genocide, Cambodia’s progress has been built on peace, the resilience of its people and foreign direct investment that has fueled a growing private sector. Cambodia has sustained strong growth for over three decades and is now one of Southeast Asia’s fastest-growing economies, averaging 7 percent annual GDP growth in the two decades before the pandemic and serving as a strategic hub in ASEAN’s market of 650 million consumers. Increasingly, this expansion is linked to deeper economic and security cooperation with the United States.

By the end of November, the Council for the Development of Cambodia had approved 609 investment projects worth $9.5 billion, a 56 percent year-on-year increase, creating over 400,000 jobs. Rising investor confidence reflects Cambodia’s political stability and predictable business environment. Exports to the United States exceeded $9 billion between January and September, up 22.6 percent year-on-year, with garments, footwear and travel goods accounting for more than half of total exports. These shipments support hundreds of thousands of Cambodian workers while sustaining American jobs in logistics, retail and distribution. 

Trade policy is central to sustaining this progress. The reduction in U.S. tariffs on Cambodian goods from 49 percent to 19 percent has strengthened export competitiveness and spurred new investment. Cambodia was among the first countries to finalize a Reciprocal Trade Agreement with the United States, providing manufacturers with greater predictability.

We are working with our American counterparts to reduce further tariffs on clothing, footwear and travel goods, industries that employ 1 million Cambodians and do not compete with U.S. manufacturers. At the same time, Cambodia now applies zero tariffs on new American goods, giving U.S. exporters one of the most open markets in Southeast Asia. This framework supports U.S. farmers, manufacturers and technology firms, and is driving increased imports of American products, from agricultural commodities to machinery.

Cambodia’s agreement to purchase 10 Boeing aircraft, with an option for 10 more, will support thousands of high-skilled American jobs. The trade accord is also reducing red tape for U.S. goods, streamlining customs procedures and establishing fair digital-services rules that protect American technology companies. We are working with U.S. partners to update rules of origin so Cambodian supply chains meet American standards.

American companies are increasingly embedded in Cambodia’s modern economy. Ford assembles vehicles in Phnom Penh. Cisco provides the cybersecurity backbone for Phnom Penh’s new Techo International Airport. Hyatt, Marriott and Tiffany are expanding to serve a growing middle class. An American investor is developing a $297 million special economic zone linked to the Funan Techo Canal, a 180-kilometer waterway that will connect Phnom Penh to the Gulf of Thailand, reduce shipping times, and open new regional trade routes. Across many sectors, American firms are finding new opportunities in Cambodia while supporting high-skilled jobs in the United States.

Recent visits by U.S. congressional delegations to Ream Naval Base and the border reflect growing American interest in Cambodia’s role in Indo-Pacific stability. U.S. Navy ship visits and the anticipated resumption of joint military exercises are strengthening trust between our defense establishments. We welcome the recent U.S. decision to lift its arms embargo on Cambodia.

Cambodia’s commitment to peace is long-standing. We are among the world’s largest per-capita contributors to U.N. peacekeeping missions. Cambodia was proud to nominate President Donald Trump for the Nobel Peace Prize in recognition of his role in securing the recent Cambodia–Thailand ceasefire. 

We acknowledge that challenges remain. Border tensions with Thailand underscore how fragile peace can be, which is why Cambodia has consistently chosen restraint and international law over escalation. We are also working with U.S. law enforcement and regional governments to dismantle online scam networks run by foreign syndicates. These transnational crimes cross borders and cannot be defeated by any country alone.

Looking ahead, Cambodia is committed to becoming an upper-middle-income country by 2030 and a high-income nation by 2050. This will require diversifying into higher-value industries, investing more in vocational training and upgrading our digital infrastructure, all while ensuring growth remains inclusive. Strong international partnerships will be central to these efforts,

This 75th anniversary is a moment to think bigger about our shared future. Cambodia and the United States can deepen commercial ties where our economies complement rather than compete, and expand cooperation in logistics and advanced manufacturing. When the United States partners with Cambodia on fair trade, investment and security, both grow stronger.

Professor Dr. Sok Siphana is senior minister of the Royal Government of Cambodia in charge of multilateral trade and economic affairs. A former secretary of state at the Ministry of Commerce, he played a leading role in Cambodia’s accession to the World Trade Organization. He has also served as director at the International Trade Centre, the joint agency of UNCTAD and the WTO, and is currently a practicing attorney and chairman emeritus of the Asian Vision Institute.

The views expressed in this article are the writer’s own.