Thailand
Cambodia: Full ratification of free trade deal with China is now expected early next year
The free trade agreement (FTA) between Cambodia and China is likely to come into force next year, after winning unanimous support from the National Assembly’s expert committee. The Ministry of Commerce will now submit a draft law to the National Assembly for approval.
Minister of Commerce Pan Sorasak held a video meeting with Nin Saphon, chairwoman of the Ninth Committee of the National Assembly, last week. They reviewed the draft law and discussed ways of ensuring it will come into force by early 2022.
The two countries signed the FTA in October 2020 after a year of talks. China already has an agreement with the Association of Southeast Asian Nations, of which Cambodia is a member. The minister emphasised the benefits of an FTA, including better market access for vegetables, fruits and other agricultural products, along with handicrafts and other goods.
He added that Cambodia has the ability to produce products that comply with China’s rules and hygiene standards and train highly skilled staff to strengthen the Kingdom’s service sector.
Sorasak said the FTA would provide more investment for Cambodia, giving opportunities to local businesses who want to expand the market for services and goods and increase exports to China. He said companies will benefit from the transfer of technology, knowledge and new skills.
The deal with China would also have the potential to attract foreign capital from elsewhere, by strengthening domestic production and improving the investment climate, he said. The minister noted the Kingdom has been hit hard by the Coronavirus pandemic so increased trade with China and more foreign investment would help the economy rebound, creating jobs and higher incomes for the Cambodian people.
Cambodian exports to China surged 56 percent in the first five months of 2021, compared with the same period last year. Imports from China rose 21 percent from January to the end of May on the strength of Cambodian demand for industrial products, raw materials and construction materials.
The increase in exports from the Kingdom was driven by rising Chinese demand for Cambodian agricultural produce. Exports may rise at an even faster pace over the rest of the year after China pledged to buy more agricultural produce during last month’s meeting between Cambodian Foreign Minister Prak Sokhonn and his Chinese counterpart Wang Yi.
Bilateral trade rose 25 percent to nearly $4 billion. Trade between the two countries dropped 5.2 percent last year to just over $8 billion.
China is turning increasingly to Asian markets because of sanctions imposed by the US and Europe. Beijing adopted an anti-foreign sanctions law last month and Cambodia backed the move.
“We support multilateralism, we support laws that support and promote multilateralism and free trade, but we do not support unilateralism,” a Cambodian government spokesman said.
Source: https://www.khmertimeskh.com/50891934/full-ratification-of-free-trade-deal-with-china-is-now-expected-early-next-year/