Trade's Politicy Discussion

7/31/2019 Trade's Politicy Discussion

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F O R T H E S E M I N A R I M P L E M E N T A T I O N O F T H E W T O A G R E E M E N T S ( A )

1 3 M A Y T O 2 6 M A Y 2 0 1 2 , J A P A N

P R E S E N T E D B Y

C H A N B O N N I V O I TC H I E F F O R W T O O F F I C E

M I N I S T R Y O F C O M M E R C E

Trades PolicyDiscussion: Cambodia


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Table of Contents

1. The Commitments (The trade political line)

2. The Opportunities and Challenges3. WTOs Negotiation priorities


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1. The Commitments

DSU

By joining the WTO, Cambodia can now fully enjoy the

rights that all members have under the WTO agreements,to use the WTOs dispute settlement procedure.


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1. The Commitments

Trade Remedies

Export subsidies: Cambodia will comply with the SubsidiesAgreement from accession. It will either eliminate the existing systemof remission of import fees and waiver of duty for certain goods used bycertain investors, or establish a functioning duty drawback systemconsistent with WTO provisions, through amendment of the Law onInvestment, as necessary, by the end of 2013.

Anti-dumping, countervailing duties, safeguard regimes:Cambodia will not apply any anti-dumping, countervailing or safeguardmeasure until it has notified and implemented appropriate laws and

regulations conforming with the WTO agreements.After that,Cambodia will also only apply any anti-dumping duties, countervailingduties and safeguard measures in full conformity with the relevantWTO provisions.


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1. The Commitments

SPS

Sanitary and phytosanitary measures:Cambodia will gradually implement the SPS

Agreement, with full implementation by1 January 2008. Cambodia will consult withWTO Members upon request if they deem that

any measures applied during the transitionperiod affected their trade negatively.


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TBT

To gradually implement the TBT

Agreement. To start full implementation TBT

from 1 Jan 2007 without recourse to

any further transitional period.

1. The Commitments


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Agriculture

Agricultural policies: Cambodia binds its agriculturalexport subsidies at zero, and will not maintain or apply anyexport subsidies for agricultural products.

The average MFN applied rate on agricultural products(WTO definition), at 14.5%, remains higher than forindustrial goods (11.3%)

TRIPS Trade-related aspects of intellectual property

rights:Apply the TRIPS Agreement no later than 1January 2007, with some protection provided in the

interim.

1. The Commitments


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1. The Commitments

Service Undertaken market access and national treatment

commitments in at least one sub-sector under each of 11different service which are business services,communications services, construction and related

engineering services, distribution services, educationservices, environmental services, financial services, health-related services, tourism and travel services, recreationalservices and transport services.

Allowing foreign firm to operate in the areas of legalservices (with some exceptions), accounting, auditing,bookkeeping, banking, management consulting,telecommunication and transport, but some conditionswere attached to market access in areas of financial services(banking and insurance) and telecommunication services.


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1. The Commitments

Service (contd)

Allowing foreign firms to provide higher education andadult education services.

Reserving part of a market for Cambodian small andmedium sized enterprise in areas such as banking, tourismand courier service (tourist guides services; opening hotelmarket only for hotels of three stars or higher; and allowingforeign supply of retailing services only a small number of

specific items or for very large supermarkets or departmentstores.


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1. The Commitments

FTA

Regional trade agreements: Cambodias only regionaltrade agreement is within ASEAN (the ASEAN Free TradeArea). In this, Cambodia will gradually eliminate tariffs andnon tariff barriers on essentially all ASEAN productsby 2015.

The ASEAN Leaders agreed to hasten the establishment ofthe ASEAN Economic Community by 2015 and to

transform ASEAN into a region with free movement ofgoods, services, investment, skilled labour, and freer flow ofcapital


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2. The Opportunities and Challenges

The Legal and Institutional Framework (Opp.)

Cambodia has for some time seeking to reform its legalsystem to bring it into line with the requirements of amodern market economy.

WTO accession can be seen as a way of organizing andaccelerating the legal reform process, and of ensuring thatinternational norms are fully reflected in Cambodias ownlegal framework governing business and trade.


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Market Access into the World Market (Opp.)

Of course, we have access to the markets of our ASEANneighbors, which consist of 500 million consumers, buteconomic conditions and products are alike and these

create some difficulties for Cambodia to export as much aspossible to this market. Therefore, it is necessary forCambodia to look at the world market as a whole to findbetter comparative advantages for its products, especially

in the US, EU, Japanese, Korean and Africa markets baseon Most Favored Nation Principle.


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The Agreement on Agriculture (Opp.)

80 percent of Cambodian labor force is employed in theagricultural sector. The agreement on agriculture providedmany benefits to LDC such as Cambodia. The agreement

required member countries to eliminate non-tariff barriers,transfer them into tariff barriers and gradually reducethem. As a LDC, Cambodia may maintain import tariffs onagricultural products at higher levels through accession

negotiations. This factor provides a better possibility forCambodia to expand its export agricultural products andattract investment in this area as well.


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Export Quota on Textile Products (Opp. & Chall)

The agreement on textile and clothing requires all membersto eliminate quotas imposed on export textile products by01 January 2005. At that time Cambodia will no longer be

concerned about export quotas to the U.S. and E.U., and weshould pay attention to the competition capacity of theprivate sector in this area.


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Dispute Settlement Mechanisms (Opp.) With suitable dispute settlement mechanisms, it will ensure

and support small and vulnerable economies such asCambodia from any violation made by big countries due to

the fact that dispute settlement mechanisms in the WTOare very crucial in providing security, safety and predicationto the economic issues of member countries.


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Special and Differential Treatment (Opp.)

WTO Agreements provide a special treatment to LDC withlonger time to prepare to implement WTO Agreements andtechnical assistance to upgrade the commercial legal

framework.

Developed countries commit to provide opportunities forgoods from least developed countries to flow into theirmarkets with DF & QF. The European Union at the LDC

Conference in Brussels declared the principal of everythingbut arms, which will provide more opportunity for LDC onmarket access.


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The Structure and the management for theimplementation (Chall.)

Cambodia has the scarcity of the human and financialresources to implement the WTO commitments and

agreements in national and provincial level as well inabroad.

Regarding to this issue it can be negatively affected on thedissemination and the exchange of the information relating

to implementation of WTO commitments and agreementsto the private sectors in the national and the provinciallevel.


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3.WTOs Negotiation Priorities

Market access for trade in goods

Work towards full duty-free/quota-free (DFQF) marketaccess, including a timeframe for achieving 100% coverageand simple & transparent rules of origin in the non-

agricultural market access (NAMA) negotiations Ensure that the 97% of products are already eligible for

DFQF market access, including all items of key exportinterest to Cambodia

If key export items are included in the 3%, advocate for

significant tariff cuts Explore options for addressing non-tariff barriers in the

NAMA negotiations


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Trade Remedy

Input into the development of the Special SafeguardMechanism to ensure flexibility for Cambodia to protectagainst import surges in key agricultural sectors

Support significant reductions in agricultural subsidies,especially in industrialized countries, to improvecompetitiveness of Cambodian products in the worldmarket


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Trade in services Advance services liberalization in sectors of export interest

to Cambodia (esp. labor services)

TRIPS Work towards TRIPS compliance taking into account social

considerations and seek further extension of compliancedeadline(s) if needed

Trade development Input into the formulation of rules on food aid to ensure

that such aid does not displace domestic producers.


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Thanks You

Trade's Politicy Discussion

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