Cambodia has been listed as one of four countries eligible for a new US Tariff Rate Quota (TRQ) programme, allowing qualifying garment and textile exports to enter the US duty‑free for a three‑year period. The scheme also includes Indonesia, Malaysia and Bangladesh.
Under the TRQ, Cambodia‑made textiles and apparel will qualify for duty‑free access up to specified quota volumes. To benefit, manufacturers must use textile raw materials sourced directly from the US. The Cambodian government intends to encourage investment in manufacturing operations that use US‑origin inputs before exporting finished garments back to the US, creating a new supply chain centred on American raw materials.
The programme may require significant adjustments for Cambodia’s garment industry. Many factories currently rely on established Asian supply chains, particularly materials sourced from China. Nevertheless, Cambodia’s competitive manufacturing costs are expected to help offset the higher costs of importing US materials.
While the US has confirmed the new TRQ arrangement, detailed implementation rules, including quota allocation methods and application procedures, have yet to be released.
