Cambodia
A positive negotiating agenda for Cambodia at multilateral and regional levels
As pointed out in the DTIS 2014 Cambodia has been privileged to be eligible for preferential access to many important markets. The trading regime that results from preferences however is going to be substantially reduced in the coming years. There have been a series of warning signs that have already conspicuously highlighted the fragility of a trade policy relying almost exclusively on unilateral trade preferences.
Cambodia and the emerging trade challenges – the erosion and loss of preferential market access and rules of origin and the quest for alternatives
Tariff preferences have played an important role in determining the growth of Cambodia’s exports during the last decade and even more pronouncedly in recent years. Cambodian exports enjoy duty-free market access under a variety of duty-free quotafree programmes that have been developed and that some developing countries have put in place for LDCs. In addition Cambodia is also expected to enjoy duty-free access within ASEAN and benefit from the free trade agreements concluded with ASEAN dialogue partners. There is a series of findings34 indicating that these regional preferences have not been fully utilized due to inherent complexities that are far from being addressed even under the AEC initiative and ATIGA.
Towards a New Trade Policy on Market Access for Cambodia
The research study discusses the current and emerging trade challenges for Cambodia. In this context the paper analyses the erosion and loss of preferential market access and rules of origin and discusses potential alternatives in light of emerging EU-ASEAN FTAs RCEP and TPP11.
Acknowledgements
This study has been drafted by Stefano Inama and Pramila Crivelli as chapter 1 of the Cambodia Trade Integration Study (CTIS) available on the Cambodian Corner website (trade policies and strategies section)1 and launched by H.E. Hung Sen Prime Minister of Cambodia in July 2019. The original document has been updated to take in account the main changes that occurred till April 2020.
No. 51239. United States of America and Cambodia
Memorandum of Understanding between the Government of the United States of America and the Government of the Kingdom of Cambodia concerning the imposition of import restrictions on Khmer archaeological material. Phnom Penh 19 September 2003
Acknowledgements
This case study for Cambodia was prepared by the UNCTAD secretariat with co-financing from Sweden for which UNCTAD is thankful.
Preface
This paper was prepared in the context of the United Nations Conference on Trade and Development’s (UNCTAD) intensified work in support of Least Developed Countries’ (LDCs) participation in trade. It aims to contribute to the discussion on market access for services and services suppliers from LDCs. In particular in the context of the World Trade Organization (WTO) Services Waiver Decision adopted on 17 December 2011 (hereinafter “the Waiver”).
Note
This publication forms part of the background research for the study titled “Effective market access for least developed countries’ services exports; An analysis of the World Trade Organization services waiver for least developed countries” (UNCTAD/DITC/TNCD/2019/1). The research was originally undertaken in 2017 and has been released for publication to help policymakers understand some of the intricacies behind the original study. Some details may have since changed.
Concluding observations
Cambodia is one of the most promising LDC economies in terms of growth rapid development services landscape and services export potential. The country’s openness liberal market economy young and agile population and proximity to important markets promise further development of its services economy especially if supply side constraints such as capacity constraints weak infrastructure and challenges related to governance and regulations are duly addressed.
Services and services trade in Cambodia
Cambodia is a Southeast Asian country with over 15 million inhabitants neighboured by Viet Nam Lao People’s Democratic Republic Thailand and the Gulf of Thailand. It is a member of the Association of Southeast Asian Nations (ASEAN).
Least Developed Countries services exports, the World Trade Organization services waiver for Least Developed Countries and preferences notified by members
This paper focuses on Cambodia as an LDC and a services exporter. It does so embedded in the immediate context of the overall question of LDCS’ services exports their promotion and the operationalisation of the LDCs Services Waiver. It thus serves as a case study one of a set of four and should be read in conjunction with the paper “Effective Market Access for Least Developed Countries’ Services Exports — Overview Analysis of the World Trade Organization Services Waiver for Least Developed Countries” which considers crosscutting observations and conclusions.