PHNOM PENH: The United Kingdom has announced a zero-tariff policy on a range of imported goods from Cambodia, including clothing and electronics. This move, confirmed by the British Embassy in Cambodia last week, is part of a broader package of new trade measures designed to simplify imports from developing countries.
The new measures are expected to benefit both British consumers and businesses by lowering prices on everyday goods. Simultaneously, they aim to support jobs and economic growth in some of the world’s poorest nations.
Key upgrades include simplified rules of origin, which will allow more goods from countries such as Nigeria, Sri Lanka, and the Philippines to enter the UK without tariffs, even if components are sourced from across Asia and Africa. This also ensures that nations like Bangladesh and Cambodia will continue to benefit from zero tariffs on products like garments and electronics.
A press release from the British Embassy stated that “New measures will make it easier for developing countries to trade, supporting jobs and economic growth in the UK overseas.”
These new preferential tariff measures are an enhancement to the Developing Countries Trading Scheme (DCTS), which was launched in 2023 following the UK’s departure from the EU. Cambodia is already a beneficiary of this scheme. The DCTS is the UK’s primary trade preference scheme, covering 65 countries and offering reduced or zero tariffs on thousands of products.
H.E. Jenny Chapman, Minister for International Development, emphasized a changing global dynamic. She stated that countries in the Global South desire a different relationship with the UK, one focused on being a trading partner and investor rather than a donor.
“These new rules will make it easier for developing countries to trade more closely with the UK. This is good for their economies and for UK consumers and businesses,” she added.
Trade Between the UK and Cambodia
The UK stands as Cambodia’s seventh-largest export market, trailing only the United States, Vietnam, China, Japan, Canada, Indonesia, Germany, and Spain.
Bilateral trade between the two nations reached approximately US$515 million in the first six months of 2025, marking a 13.2 percent increase compared to the same period last year. During this period, Cambodia’s exports to the UK accounted for US$489 million, a year-on-year increase of 14.7 percent, according to a report from the General Department of Customs and Excise of Cambodia.