Cambodia Investment Review
The European Chamber of Commerce in Cambodia (EuroCham) Garment & Manufacturing Committee has welcomed the U.S. government’s decision to reduce tariffs on Cambodian garment and footwear exports, calling it a vital step toward restoring confidence in bilateral trade ties and strengthening supply chain resilience.
The move follows months of engagement between Cambodian authorities, private sector stakeholders, and U.S. trade counterparts. Industry leaders view the decision as a potential catalyst for renewed sourcing opportunities and long-term investment in Cambodia’s garment and manufacturing sector, which remains a cornerstone of the country’s export-driven economy.
A Boost for Manufacturers
Emerald Am, Chairperson of EuroCham’s Garment & Manufacturing Committee, said the tariff reduction offers a much-needed reprieve for manufacturers facing cost pressures and uncertainty in global markets.
“This decision provides breathing room for manufacturers and an opportunity for brands to reinvest in Cambodian supply chains,” Am said. “We urge our members to seize this momentum by doubling down on labour compliance, gender equality, and sustainability innovation.”
The announcement comes as Cambodia seeks to strengthen its position as a reliable sourcing hub for global brands amid shifting supply chains and rising environmental, social, and governance (ESG) requirements. According to EuroCham, the tariff cut should encourage reinvestment in worker welfare programs, enhanced factory standards, and sustainable production models in line with international expectations.
Aligning with Global Standards
The EuroCham committee highlighted its commitment to supporting members in leveraging trade incentives, expanding sourcing opportunities, and meeting global due diligence obligations. The push aligns with ongoing efforts by both Cambodian authorities and industry leaders to improve compliance and maintain preferential market access to key destinations, including the U.S. and European Union.
Cambodia’s garment sector has been under scrutiny in recent years over labour conditions and environmental impacts, with major trade partners increasingly tying tariff privileges to improvements in these areas. Analysts note that sustained progress on ESG benchmarks could help safeguard Cambodia’s competitiveness in a fast-evolving global apparel market.
Industry Advocacy and EuroCham’s Role
Established in 2011, EuroCham Cambodia represents over 400 European businesses across seven national chapters and 23 European countries. Its Garment & Manufacturing Committee serves as a platform for peer-to-peer dialogue, public-private engagement, and policy advocacy aimed at fostering a sustainable and competitive manufacturing sector in Cambodia.
The committee works closely with government institutions and international stakeholders to promote progressive legislation, organize industry forums, and facilitate entry for new European investors and sourcing companies.
EuroCham reiterated its intention to use this latest development as a springboard for advancing long-term industry reforms, ensuring that the benefits of tariff reductions translate into better working conditions and sustainable growth for Cambodia’s $10 billion garment industry.
