|
United
States
Trade
Representative Susan C. Schwab met with
Cambodian Minister of Commerce Cham Prasidh
in Siem Reap, Cambodia to discuss ways to
broaden and deepen bilateral trade and
investment ties between the two countries.
The visit is
the first to the country by a U.S. Trade
Representative and included a bilateral
meeting under the U.S.Cambodia Trade and
Investment Framework Agreement (TIFA). Under
the TIFA dialogue, Ambassador Schwab and
Minister Prasidh discussed Cambodia's recent
strong economic growth, its domestic reform
agenda, and implementation of legal and
trade reforms committed to under Cambodia's
2004 accession to the World Trade
Organization (WTO).
"Cambodia is
working hard to put the right policies in
place to support an open and welcoming
environment for trade and investment," said
Ambassador Schwab: "There has been real
progress on the ground. We will continue to
work together to build momentum to sustain
these reform efforts."
The two
officials reviewed Cambodia's current
efforts to improve trade facilitation,
protect intellectual property rights and
enhance the attractiveness and
competitiveness of Cambodia's investment
climate. Discussions focused on marking the
progress Cambodia is making in meeting the
benchmarks for implementation of WTO-consistent
trade practices, as well as highlighting
areas where additional work remains to be
done. The two countries agreed upon a plan
of action under the TIFA earlier this year,
which will add momentum for trade-related
reforms within Cambodia.
The two
ministers also discussed their mutual
interest in a successful conclusion to the
WTO Doha negotiations and the instrumental
role that Cambodia can playas a least
developed country (LDC) in contributing to
that outcome.
Background
Total two way
goods trade between the United States and
Cambodia amounted to $1.95 billion dollars
in the year to date through
September 2007 and totaled $2.2 billion in
2006. U.S. foreign direct investment in
Cambodia is approximately $1 million.
Primary U.S.
exports include vehicles and machinery. The
United States is Cambodia's largest export
market accounting for $1.85 billion worth of
goods year to date through September 2007.
Cambodia's
primary exports to the United States are
knit and woven apparel. Cambodia joined the
WTO in 2004 as a least developed country (LDC)
and agreed as part of its accession to
implement WTO-consistent trading rules over
a five-year transition period.
The U.S. -
Cambodia Trade and Investment Framework
Agreement, signed in 2006, is the primary
bilateral dialogue between the two
governments to discuss implementation of
these commitments and other trade and
investment related issues.
The United
States and Cambodia negotiated and signed a
Trade and Investment Framework Agreement (TIFA)
on July 14, 2006. The first meeting under
the TIFA was held in Cambodia in February
2007 and included a discussion on Cambodia's
implementation of it's WTO commitments;
customs regime; legal framework for
protection of IPR; investment climate
issues; and labor and worker rights. In
addition, the two sides discussed they might
expand and liberalize trade and investment.
Since Cambodia
joined the WTO in late 2004 Two-way trade
between the United States and tambodia has
grown reaching $2.3 billion in 2006.
Cambodia is
the United ,States' 74th largest
trading partner.
Trade Data:
U.S. goods
exports in 2006 were $74 million, up 7
percent from the previous year.
Corresponding U.S. imports from Cambodia
were $2.2 billion, up 23.9 percent. Cambodia
is currently the
138th largest export market for
U.S. goods.
Meanwhile, US
Ambassador, Joseph A. Mussomeli, during the
Reception in conjunction with the Cambodia
Investment, Trade & Infrastructure Business
Roundtable, said: "I don't have to tell you
all that Cambodia is becoming a focus for
investment - you wouldn't be here if you
didn't know that already."
Foreign direct
investment in Cambodia reached $425 million
last year. Predictably, we Americans are a
bit behind the curve, and while a smart and
stalwart band of American investors has been
here for many years, in general American
companies are just beginning to re-discover
the Cambodian market.
This
re-discovery has been slow. In truth,
Cambodia has suffered from two serious
problems. First, its recent history - 30
years of civil war, foreign invasions, and
economic chaos.
But Cambodia
has come back and in only 15 years has
resurrected itself and re-established itself
as an attractive market for investment.
Unfortunately, Cambodia's other problem is
more intractable and pernicious - our
perceptions of Cambodia.
While Cambodia has made great strides to enter the 21st century, some foreigners, including the foreign media, are stuck in the past. Their mindset, when they are mindful at all, wallows in the past and cannot see the present, let alone the future.
The Cambodian
government and people deserve much credit
for the dramatic change in the political and
economic atmosphere here. Government reforms
have made it easier for businesses. Customs
changes have made it easier for Cambodia to
trade with other countries.
Cambodia has
one of Asia's most liberal regimes for
foreign investors. Land ownership is the
only area in which there is any significant
distinction between local and foreign
investors.
"I also don't
need to tell you that there is more to be
done if Cambodia is to compete. It must
develop its workforce. The rule of law must
become central to Cambodian society and
business."
Improvements
in infrastructure must be accelerated. And,
most crucially, corruption cannot be
ignored. While some investments will come
regardless of the level of corruption,
Cambodia will lose a great many of its
potential investors if it does not combat
corruption.
All countries
have corruption, but at the risk of sounding
unfair, Cambodia cannot afford the luxury of
corruption. It does not have yet the
investments of its neighbors and it will not
get them unless it shows a firm commitment
against corruption.
"So if you
already know about what is attracting
investors here and the challenges foreign
businesses face, why am I taking up your
time talking?"
It's because
there is another message that you may not be
hearing - and maybe you don't want to hear:
Cambodia needs more investment. Cambodia is
still emerging from the horrors of war and
unspeakable tragedy.
For the first
time in decades, Cambodia has sustained
political and economic stability. And while
Cambodia has had some of the highest
economic growth rates in the world in recent
years, it also has a very narrow economic
base that is desperate for diversification.
The Cambodian
government recognizes that the country needs
to create jobs and move beyond tourism and
garments, and is eager to work with you to
promote investment in agriculture,
manufacturing, services, and other areas. So
when you leave and go home to consider
whether or not to do business here,
remember: investing in Cambodia will make
you a profit, but it will also support a
resilient people.
Cambodian Review Volume 4, Issue 1.
|
"I
don't have to tell you all that Cambodia is
becoming a focus for investment - you wouldn't
be here if you didn't know that already."