Cambodia, US mull to establish trade management system
Cambodia, US mull to establish trade management system
The Export Control and Related Border Security (EXBS) Program of the United States and the Royal Government of Cambodia (RGC) Tuesday examined the possibility of establishing the Strategic Trade Management (STM) system aimed at efficiently controlling the export of strategic products.
The inputs of the STM system were discussed during the meeting between Ok Boung, Secretary of State of Ministry of Commerce (MoC) and Lewis Pyrtle, Regional Advisor of the State Department’s EXBS Program in Phnom Penh on October 22.
Addressing the meeting, the MoC Secretary welcomed the EXBS delegation and praised the excellent relations and cooperation between the two countries.
Boung pointed out that the US remains Cambodia’s most important trading partner, contributing greatly to the Kingdom’s socio-economic development.
The MoC and EXBS delegations engaged and exchanged views on the crucial need to establish the STM system and regulate trade, particularly the export control of strategic products and dual-use goods.
According to MoC announcement, both sides also shared insightful experiences and best practices related to the STM system which has emerged as a new trend in Cambodia and regional contexts.
Separately on the same day, Chea Ratha, Secretary of State of MoC, organised an inter-ministerial meeting to gather inputs for developing the Fourth Pillar of the Cambodia Trade Policy Framework Towards 2030 (CTPF 2030), citing the demand to promote the digital trade.
She stressed that the promotion and development of digital trade are critical to the country’s economy, a stimulus for increasing trade efficiency in accessing the market and enhancing competitiveness by fostering business innovation, digital transformation, inclusivity and sustainable development.
According to MoC, the fourth pillar is a platform for integrating the Kingdom’s economy into the digital world. This pillar is currently under the ongoing negations of the Digital Economy Framework Agreement (DEFA) and other free trade agreements (FTAs).
It should be noted that the CTPF 2030 was planned to cover six pillars, aimed at enhancing the country’s global trade integration, competitiveness, sustainability and resilience.
The first pillar focuses on integrating trade into the global economy, second on strengthening its competitiveness in global markets, third to promote its inclusivity and sustainability and fourth on integrating the Kingdom’s economy into the digital world.
The fifth pillar targets priority sector development while the last is to prepare the Kingdom for LCD graduation.
Speaking to Khmer Times, Chey Tech, a socio-economic researcher said, “The EXBS programme is a valuable initiative that benefits both Cambodia and the United States by enhancing security, promoting economic prosperity and strengthening international cooperation.”
He explained that the programme helps prevent the proliferation of weapons of mass destruction, conventional weapons and dual-use technologies that could be used for harmful purposes.
“Besides, the programme contributes to Cambodia’s national security by ensuring that strategic goods and technologies are not diverted to hostile actors or used for illicit purposes.”
Tech underlined that EXBS helps maintain Cambodia’s economic stability and reputation as a reliable trading partner as well as fosters cooperation on issues related to export controls and border security, strengthening bilateral relations and promoting regional stability.
He said, ‘The implementation of this programme in Cambodia is likely to face several challenges as the RGC may have limited resources to allocate to the programme including the personnel, equipment, and infrastructure.
“Additionally, the necessary technical expertise to implement and maintain an effective export control system must be addressed and the corruption within government agencies and customs officials can undermine the effectiveness of export controls and facilitate illicit trade,” Tech added.
He went on to add that the smuggling activities, especially along Cambodia’s borders with neighbouring countries, can make it difficult to enforce export controls.
Implementing strict export controls may have negative economic consequences for the country, particularly if it restricts the export of legitimate goods and technologies.
