Air Cambodia will purchase up to 20 Boeing 737 MAX airplanes in a $3 billion deal for the Southeast Asian carrier to grow its fleet, the two companies said Tuesday.

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The deal comes a year after Cambodia said it would drop all tariffs on imports from the United States and order up to 20 Boeing 737s for its national airline in an effort to placate the Trump administration.

"The 737-8 gives Air Cambodia the ideal combination of range, capacity and fuel efficiency to support our next phase of growth," CEO of Air Cambodia David Zhan said in a statement released on Tuesday referring to one of the models from the MAX range.

The 737-8 can fly up to 178 passengers in a two-class configuration with a range up to 6,480 km and is well-suited to support the airline's growing regional network, the statement added.

The US Department of Commerce's International Trade Administration said in a statement following the announcement that the deal marks a "momentous development in the trade ties between the United States and Cambodia."

This agreement will also support more than 12,000 jobs across America, the department added.

"This deal is an incredible milestone for Boeing and Air Cambodia –- the start of a great commercial partnership of world-class US aircraft powering continued domestic economic growth," the department's Assistant Secretary for Global Markets David Fogel said in a statement.