Trade agreement set to boost Laos-US economic cooperation
Trade agreement set to boost Laos-US economic cooperation
A new bilateral Trade and Investment Framework Agreement signed by the governments of Laos and the United States in the US last week will expand economic ties between the two countries, the US Embassy to Laos has said.
Lao Minister of Industry and Commerce Khemmani Pholsena and United States Trade Representative Michael Froman signed the agreement in the US last week during the Asean Economic Ministers' US Roadshow in San Francisco, California. Ms Khemmani and Mr Froman co-chaired the roadshow.
The agreement creates a forum for the United States and Laos to engage on bilateral trade and investment issues to expand bilateral economic ties, including through trade facilitation, non-tariff barriers, intellectual property, environmental protection, and capacity building, the e mbassy said in its press release.
The agreement also offers a forum to coordinate on multilateral and regional issues, such as Asean Economic Community (AEC) integration.
“Today's agreement provides a vehicle for strengthening US-Lao trade and investment relations,” said Froman. “It reflects President Obama's commitment to Asean and it will promote increased economic opportunities between us.”
The signing ceremony was the latest demonstration of the growing cooperation between Laos and the United States.
The United States was Laos' 9th largest export market with an export value amounting to more than US$24 million in 2014, according to statistics from the Lao Ministry of Industry and Commerce.
Meanwhile, Lao imports from the US amounted to more than US$21.2 million in 2014, making the US the 10th largest importing source for Laos that year.
The signing ceremony of the bilateral Trade and Investment Framework Agreement took place after the US-Asean Special Summit convened on February 15-16 at Sunnylands in California. The summit was co-chaired by US President Barack Obama and Lao President Choummaly Sayasone.
During the Roadshow, Asean economic ministers heard from leading technology companies in California's Silicon Valley and discussed ways to enhance trade and investment relations among Asean members and the United States.
President and CEO of the US-Asean Business Council, Alexander Feldman, said at the Roadshow event that Asean is significant to the US as the regional bloc has been one of the US's key trade and investment partners.
Asean countries are collectively the United States' fourth-largest trading partner. Total United States investment in Asean is more than the combined US investment in China and India, and in 2014 reached US$13 billion or 10 percent of Asean's total foreign direct investment.
With Laos taking the Asean Chair in 2016, Ms Khemmani said at the Roadshow event that Laos was ready to work with Asean member countries to further improve the investment and trade climate to draw greater investment and trade to the region.
Given that US investors have not been active in some Asean countries, Adjunct Senior Fellow of the East-West Centre based in Hawaii, Charles B. Salmon Jr., said it is important for a country to establish a rule-based investment environment where businesses enjoy fair competition and treatment in order to attract foreign investment.
