The Regional Comprehensive Economic Partnership (RCEP) is unlikely to benefit the textile sectors of Cambodia and Indonesia.

Even though both countries are members of RCEP, Cambodia and Indonesia are competitors in the world market in the textile sector and their current bilateral trade in apparel, fabrics and yarn is limited.

Cambodia’s apparel imports from Indonesia are negligible.Cambodia’s home textile exports to Indonesia ended up being negligible in 2021 and 2022. Its import of home textiles from Indonesia is also insignificant. Yarn imports from Indonesia to Cambodia have also showed a decline in recent years.

However, trade ties between Cambodia and Indonesia are expected to rise further and cross $1 billion this year.Cambodia’s exports of goods to RCEP member countries in the eleven months of last year rose by five percent compared to the same period last year.

The RCEP agreement was signed in November 2020 by 15 countries including the ten Asean member states, Australia, China, Japan, Korea, and New Zealand. The agreement is expected to increase competitiveness and strengthen the global production network, promote regional supply chains through better market access for exports of goods and services, reduce or eliminate trade barriers, and enhance transfer of technology.