Harrison White
Heather Wheeler MP, the UK Trade Envoy to Cambodia and Laos, concluded her three-day visit to Phnom Penh from September 24 to 26, reinforcing the United Kingdom’s focus on intensifying bilateral trade, investment, and sustainable development in Cambodia. The visit also demonstrated the UKs confidence in Cambodia’s new government, making her the first senior UK official to visit since Cambodia’s 2023 general elections.
According to the latest UK Government figures total trade in goods and services between the UK and Cambodia accounted for £996 million in the four quarters to the end of Q1 2023. This represents a significant increase of 42.5% or £297 million in current prices compared to the same period the previous year.
Faith In the New Government and Highlights Strong Agenda of Trade
During an exclusive conversation with Cambodia Investment Review, Heather Wheeler emphasized the importance of her visit, stating it “shows our faith in the new government and highlights our strong agenda of trade.” This builds on the existing cooperative ties between the two nations, stemming from Cambodias support for the UKs bid to join ASEAN as a Dialogue Partner when I was last in Cambodia four years ago.
The agenda during her Cambodia trip was extensive, including discussions with Cambodian ministers and business leaders from both countries. The UK is particularly interested in deploying green investment and nurturing Cambodia’s exporting potential under its Developing Country Trading Scheme (DCTS).
The DCTS offers a generous set of trading preferences for developing countries, aiming to strengthen their exports to the UK and expand their economies. Through this scheme, a wide range of businesses can benefit from zero tariffs on their products, while enabling UK businesses to access thousands of products from around the globe at lower prices. This ultimately also reduces costs for UK consumers.
Wheeler also elaborated on the UKs strategic objectives in the bilateral trade relationship, saying, “While 75% of the trade value flows from the UK to Cambodia, we see the country’s 5%+ annual GDP growth as a robust opportunity.” To redress the trade imbalance, the UK aims to fortify Cambodias FinTech, green technology, and agriculture sectors. Specifically, she mentioned seven Cambodian agriculture companies on the cusp of export-readiness, which the UK hopes to help access overseas markets, including through offering support in marketing, branding, and packaging.
Alignment with the UKs broader ASEAN strategy was also evident through the inauguration this year of a new joint trade and investment forum. “A huge amount of UK government funding aims to support high potential developing countries, like Cambodia,” Wheeler revealed. Celebrating 70 years of diplomatic relations with Cambodia, the UK is looking beyond Europe to the flourishing ASEAN region.
Unveiling the UK’s First University Campus in Cambodia
A highlight of her visit was the unveiling of De Montfort University the UK’s first accredited university branch campus in Cambodia. The ceremony was graced by the presence of Cambodia’s Deputy Prime Minister and the Minister of Education, Youth, and Sport. Wheeler remarked, “This groundbreaking educational venture underlines the UK’s ongoing commitment to Cambodia, particularly in the area of education and capacity building.”
Looking ahead, Wheeler disclosed key performance indicators for future engagement, encompassing elevated agricultural exports and climate change resilience. “We aim to tackle water quality, sanitation, and large-scale infrastructure projects involving major UK participants,” she said. Wheeler concluded by stating, “The game-changer for us would be expanding financial services,” reaffirming her optimistic view that “Cambodia will be a key global hub in the coming years.”
Wheelers visit showcased the UK’s shifting emphasis towards trade and investment in Cambodian and the region, notably in financial services and education for exports to Cambodia and in modernizing Cambodia’s agricultural sector for imports. Furthermore, the visit symbolized the UK’s vote of confidence in Cambodia’s recently elected government, solidifying the foundation for a comprehensive, multi-layered partnership in the coming years.
