Cambodia Secures US Duty-Free Textile Quota, Boosting Apparel Exports
Cambodia has secured a place among just four countries selected for a new US Tariff Rate Quota (TRQ) programme, allowing specified quantities of textile and apparel products to enter the United States duty-free for the next three years.
Deputy Prime Minister and First Vice-Chairman of the Council for Development of Cambodia, Sun Chanthol, announced that Cambodia will participate in the programme alongside Indonesia, Malaysia and Bangladesh.
Under the TRQ arrangement, eligible textile and apparel exports will qualify for duty-free access to the US market, provided manufacturers meet the programme’s sourcing requirements by purchasing key raw materials such as cotton, yarn and fabric from the United States.
Chanthol said the initiative presents an opportunity for Cambodia to strengthen its textile and garment exports while encouraging manufacturers to integrate more US-origin materials into their production.
However, he noted that the US government has yet to publish the final implementation guidelines, including quota allocation formulas and operational procedures.
The Cambodian government plans to attract textile manufacturers willing to source American raw materials, manufacture garments domestically and export finished products to the US under the new preferential arrangement.
Industry experts, however, believe the transition may not be straightforward. Chea Chandara, President of the Logistics Supply Chain and Brokers Business Association in Cambodia (LOSCBA), pointed out that most garment factories in Cambodia are Chinese-owned and have long-standing supply chains centered on Asian raw material suppliers.
He said manufacturers will need to evaluate whether sourcing more cotton, yarn and fabric from the US is commercially viable to qualify for the duty-free benefits, as changing established supply chains involves significant planning and business adjustments.
Chandara added that while US raw materials are competitively priced and shipping costs remain manageable, Cambodia continues to rely heavily on imported textile inputs. Developing a stronger domestic textile supply chain will require substantial investment and time.
Despite these challenges, he noted that Cambodia remains competitive in the global apparel market and the new TRQ programme could further strengthen the country’s position as a preferred sourcing destination for textile and garment exports.