Cambodia to buy Boeing 737 Max aircraft in deal with the US for reduced tariffs
Cambodia to purchase up to 20 Boeing 737 Max aircraft in exchange for reduced US tariffs, strengthening trade ties and addressing the trade imbalance.
Cambodia has reached a trade deal with the United States following discussions led by Sun Chanthol, the Deputy Prime Minister of Cambodia. According to Bloomberg, the agreement will see Cambodia eliminate import tariffs on US goods and commit to purchasing up to 20 Boeing 737 Max aircraft to reduce the trade imbalance between the two countries.
Cambodia's national airline, Air Cambodia, is currently negotiating to acquire 10 planes, with an option for an additional 10. However, no specific details regarding the pricing or delivery timeline have been disclosed.
Sun Chanthol explained that the Cambodian government had agreed to eliminate import tariffs, bringing them down to zero. He noted that the move is part of efforts to address non-tariff barriers (NTBs) and other obstacles, as emphasised by the US during trade discussions.
The deal comes after the Trump administration had imposed a 19% reciprocal tariff on goods from Cambodia and Thailand. This is a reduction from the 36% tariff initially proposed, following Trump's threats to block trade agreements due to the severe border conflicts between Thailand and Cambodia.
Bloomberg reported that Boeing’s deal with Cambodia may upset China’s Commercial Aircraft Corporation (COMAC), which has been lobbying for Air Cambodia to purchase Chinese-made aircraft, such as the Comac C919, designed to compete with Boeing and Airbus.
However, Boeing has not yet responded to inquiries regarding the deal, and COMAC could not be reached for comment.
Additionally, Sun Chanthol stated that Cambodia agrees with the US that the country’s import inspection system and labour standards need improvement. He highlighted that the US had raised concerns over these non-tariff barriers during negotiations.
Cambodia has long had a trade surplus with the US, primarily exporting garments, footwear, and agricultural products, while imports from the US have been significantly lower.
“We thank President Trump for setting our tariff rate at 19%,” said Sun Chanthol, adding that Trump should be nominated for the Nobel Peace Prize for his role in helping Thailand and Cambodia end their border conflict.
This move mirrors a similar offer made by Pakistan following recent clashes with India, where Trump claimed to have mediated the conflict with the threat of trade agreements, though India has denied such claims.
