1. Cambodia in WTO Miss. MOEUNG Sovannden Mr. MAO Veasna Mr. NHEM Sovanna
Sunday, September 23,2007

2. Cambodia in WTO Main focuses: History of Cambodia’s accession into WTO
Opportunities and Challenges
Policy Recommendation to seize opportunities and overcome challenges
Sunday, September 23,2007

3. 1- History of Cambodia’s accession into WTO
What is WTO?
- WTO stands for The World Trade Organization
- It was created in 1995 as one of the outcomes of the Uruguay Round of multilateral trade talks.
- There are 151 members
Sunday, September 23,2007

4. Socio-economic Background
- In mid-1993, Cambodia intended to re- establish itself as a democracy and a prosperous country
- The economic recovery has largely been confined to urban centre.
- The overall economic growth is narrowly based and fragile ( mainly based on garment, tourism and construction).
- The gap between the rich and the poor has dramatically increased.
Sunday, September 23,2007

5. Socio-economic Background
- There has been very little crop production for population consumption.
- The main engine of economic growth and job creation was the garment industry.
- The benefits of the tourism industry boom on local livelihood has remained limited.
Could the WTO membership help improve Cambodia’s socio-economic Condition?
Sunday, September 23,2007

6. Reasons for joining WTO
To protect its fledging garment industry after the removal of export quotas at the end of 2004 under MFA agreements for all members of WTO.
To benefit fully from the rights accorded to all members under the WTO agreements.
Will Cambodia really benefit from entering the WTO?
Sunday, September 23,2007

7. Cambodia’s accession in WTO
- In October 1994, Cambodia applied for the membership of WTO.
- In December 1994, a Working party was established to consider the application
- In June 1999, a Memorandum on its Foreign Trade Regime was submitted under the technical assistance from UNCTAD and the World Bank.
Sunday, September 23,2007

8. -. In January 2001, questions and answers
- In January 2001, questions and answers related to the Memorandum and conditions for the accession were circulated.
On 16 April 2003, the Working Party met to consider the Memorandum for the first time
On 22 July 2003, the Working Party meeting in Geneva indicated that Cambodia would become member of WTO in September 2003.
Sunday, September 23,2007

9. On 13 October 2004, Cambodia become a full member of WTO
On 11 September 2003, WTO ministers approved Cambodia’s membership agreement and Cambodia will become a full member 30days later after ratifying the agreed terms and informing to WTO.
On 11 February 2004, the General Council decided to extend from 31 March to 30 September 2004
On 13 October 2004, Cambodia become a full member of WTO
Sunday, September 23,2007

10. 2- Opportunities and Challenges
Most external trade barriers will be removed.
The fledging garment industry is protected after the removal of export quotas.
Low tariff rate as low as zero for LDC like Cambodia.
No ceiling on quantity that can be exported.
The rights accorded to all members under the WTO agreement.
Sunday, September 23,2007

11. Concessions that go far beyond the level of commitments.
Challenges:
Concessions that go far beyond the level of commitments.
A large number of commitments in legal and judicial system reforms, including the enforcement of the rule of law, and the establishment of a specialized commercial court has been made.
The local production sector may have difficulties in competing with foreign producers.
Lack of financial supports for economic reforms
Sunday, September 23,2007

12. 3- Policy Recommendations
Restructuring Public Administration
Highest priority-civil service reforms
Improve good governance & fighting corruption in public administration
Reducing overstaffed to meet the real need
Staff with competency
Civil servants salaries
Transform the surplus public administration staff into a productive group
Military, police, and judicial system reforms (130,000 soldiers & 70,000 policemen is simply too extravagant)
Sunday, September 23,2007

13. Implementing and enforcing the laws
Promulgation of laws and regulations need to be implemented.
Improve educational system for general populations & offer special education to law enforcement authorities
Strong administration and institutions
Sunday, September 23,2007

14. Re-adjusting fiscal policy & Improving banking system:
Raising effectiveness & efficiency of tax collection
Review re-licensing requirement.
Increase the required capital of commercial bank operations (funds available for SMEs)
Develop relevant credit policy & enhance rule of laws to protect CBs from illegal & unethical practices.
Sunday, September 23,2007

15. Rethinking foreign assistance priority:
Focus more on the structural adjustment program
Increasing the effectiveness & transparency in financial mgt to strengthen reform process more effective & efficient
Clear objective & systematic strategies with focus on implementation
Sunday, September 23,2007

16. Conclusion:
Government commitment to promptly implement reform in a concrete manner
Real determination of Cambodia leaders to move country forward with the rule of law
Consistent with economic development strategy
Sunday, September 23,2007

17. Thank you for your attention
The end
Thank you for your attention
Sunday, September 23,2007

18. Commitment of adoption/implementaton of commited laws/regulations is the challenges?How membership effect (negative) on Cambodia reform?
Issue of the copuntry’s capacity (it is new for Cambodia)
Issue of timing (short-period)
Sunday, September 23,2007

19. Competition law
Commercial courts
Sunday, September 23,2007