Experts Urge Cambodia to Bolster Labor Standards as U.S. Tariff Review Looms

PHNOM PENH, June 12, 2026 (KPT) — Cambodian experts have urged stronger labor compliance, supply chain transparency and industrial upgrading as the country faces a proposed U.S. tariff review linked to forced labor concerns.

The Office of the U.S. Trade Representative has suggested a 10 percent tariff on Cambodian exports under Section 301, citing gaps in labor and supply chain enforcement. Cambodia has stressed adherence to international standards and pledged continued monitoring.

Hong Vannak of the Royal Academy of Cambodia said the United States remains a critical market for garments, footwear and travel goods, predicting exports could exceed US$10 billion this year. He warned higher tariffs would erode competitiveness against regional rivals, stressing Cambodia must continue improving labor practices to meet U.S. requirements.

Researcher Chay Tech said Cambodia’s competitiveness will depend not only on the rate imposed but also on comparisons with Vietnam, Bangladesh, India, China and Indonesia. He called for stricter enforcement of ILO conventions, stronger oversight of working conditions and improved verification of Certificates of Origin to boost confidence in Cambodian exports.

Both experts said Cambodia must move beyond labor‑intensive manufacturing toward higher‑value industries, diversify export markets and pursue new trade arrangements. Tech argued that upgrading to semi‑technology and advanced manufacturing would generate greater value‑added production, higher wages and stronger resilience.

Exports to the U.S. rose 32 percent in the first five months of 2026 despite an earlier 10 percent tariff under Section 122. Public comments on the latest USTR proposal are due by July 6, with hearings scheduled for July 7.