Cambodia has signed a Memorandum of Understanding (MoU) with Timor-Leste on air transport services, aiming to boost bilateral trade between the two countries.

On October 20, Secretary of State Civil Aviation, Mao Havanal, signed the MoU with Timor-Leste at the Peace Palace to promote trade, economy, and tourism between the two countries. This was during a visit by José Ramos Horta, President of Timor-Leste, to Cambodia from October 19 to 22.

According to Sin Chanserivutha, spokesman for the Secretariat of State for Civil Aviation, the agreement will benefit both countries by establishing closer ties in the field of civil aviation, cooperating to strengthen the safety and security of international air passengers, and establishing air transport links for passengers and cargo.

Additionally, the MoU will establish connect people, culture, and business between the two countries, and support the long-term growth of aviation, he added.

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In 2019, Cambodia exported $320,000 to Timor-Leste, with the main products being aluminum cans ($279,000) and metal stoppers ($41,000). During the last 15 years, Cambodian exports to Timor-Leste have increased by 122 percent, from $2 in 2004 to $320,000 in 2019.

In 2019, Timor-Leste exported $3,550 of coffee to Cambodia. During the last 14 years, Timor-Leste exports to Cambodia have decreased at an annual rate of 8.49 percent, from $13,400 in 2005 to $3,550 in 2019.

Hong Vannak, an economic researcher at the Royal Academy of Cambodia, said that while the two countries' economies, agriculture, and trade are not yet strong, exports and imports will grow once their cooperation is strengthened.

“It’s better than having more energy,” he added. “The signing of an agreement between Cambodia and Timor-Leste on air transport services will increase the mutual trade benefits of some goods, including tourism.”

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He said that Cambodia also has the potential to be an attractive tourist destination for Timor-Leste, despite the fact that Timor-Leste is a small country.

“So that there is no loss in this collaboration,” he said. “However, we must ensure that it is honest and transparent without conflict of interest.”

By 2022, Cambodia had signed Air Transport Services Agreements (ASAs) and MoUs with 47 countries around the world.

According to the Secretariat of Civil Aviation, the total volume of air cargo decreased by 38,783 tons in the first eight months of 2022, representing a 10 percent drop compared to the same period in 2021, and a 20 percent decrease before the Covid-19 pandemic.