Cambodia commerce minister expresses confidence to CCFTA: Interview
The Minister of Commerce of Cambodia Pan Sorasak gave a joint interview to the Chinese media recently. He responded to a series of questions regarding the two countries, including the mutual support between China and Cambodia on the fight against COVID-19 pandemic, consolidation of Cambodia-China friendship, benefits brought by the Belt and Road Initiative to Cambodia, and perspective of global economy. Details are as the following:
Q：Facing the challenge of COVID-19, what have Cambodia and China done to help each other overcome economic difficulties? How China stabilizes regional supply chains and promotes the recovery of the regional economy? Do you think China’s efforts significant to Cambodia and the ASEAN?
A： Prime Minister Samdech Hun Sen once said “A friend in need is a friend in deed”. During the COVID-19 hardship, Cambodia and China have shown a pragmatic solidarity to alleviate the pandemic and navigate economic recovery.
When China was severely hit by the pandemic in early 2020, Prime Minister Samdech Hun Sen paid a special visit to Beijing to show support in fighting the Covid-19 and shed a confidence and trust on China’s ability to cope with this crisis. Cambodia in its existing capacity managed to dispatch 10,000 of face masks to two provinces of China in late February 2020. His Majesty King Norodom Sihamoni and Her Majesty Queen Mother Norodom Monineath Sihanouk also donated $150,000 to China for the cause.
While the world was clamoring travel restrictions to and from China during the outbreak, Cambodia has maintained its commercial and tourist flights to and from China to ensure China’s economy vis-à-vis regional supply chain remain less impacted. In turn, China in mid-March 2020 sent 12 ships containing more than 1,000 containers of raw materials to support the struggling garment factories in Cambodia.
Moreover, China also sent medical experts and testing devices of the COVID-19 to help support Cambodia’s combat against the virus. These gestures show the true friendship that we will always have each other’s back in every difficult situation. As we all know, the COVID-19 pandemic has not just caused us many lives but has also disrupted regional and global supply chains.
Though China has been hit hard by the pandemic, its efforts in stabilizing industrial and supply chains in the region shall be praised. With effective policies and timely responses, China has managed to curb the spread of the virus and at the same time keep industrial chains stable and smooth. These efforts have helped ASEAN countries, especially Cambodia, mitigate the impacts of the virus on our economy.
Q：The free trade agreement between Cambodia and China has been concluded last week. What does that mean to Cambodia and the Cambodia-China friendship? Do you have confidence in the Chinese market, and why? What advantages do you think China’s economy has and which one impresses you the most?
A: The Cambodia-China Free Trade Agreement (CCFTA) negotiations were concluded on July 20, 2020. The Agreement means a lot to Cambodia’s economy as it gives greater Market Access (MA) to Cambodia’s products of 8,328 tariff lines equivalent to 97.44% of the overall tariff lines that China offers to the Kingdom.
This very huge MA enables Cambodia to diversify its products and markets and reduce over-reliance on a few trading partners (i.e. EU, US, Canada, etc) who traditionally trade with Cambodia on concessional basis (EBA, GSP…). It also impeccably responds to Cambodia’s policy directions sketched in the Industry Development Policy (IDP) and Rectangular Strategy (RS).
The Agreement also per se ironizes Cambodia-China friendship which has for decades relied on the trust and mutual support principle. From the spirit of such Agreement and the existing “iron friendship” cemented thus far between the two, Cambodia is highly confident that China, as a hub of global business and investment, will not only open its market access for Cambodia’s products in this current state, but also consider further liberalization for the Kingdom’s export, taking into account the latter’s development potentials and needs.
As a world economic powerhouse, China has a number of advantages ranging from raw materials, productivity, labor, infrastructure, economic diversification to education, among others. These have been the sources of China’s economic boom, and Cambodia considers China as a role model in our economic development as well.
Q: After the FTA being officially signed, will the construction of Belt and Road in Cambodia speed up? How do you see the Belt and Road Initiative (BRI)? What has the initiative brought to Cambodia? What is your expectation for the BRI in the future?
A: The upcoming signing of the CCFTA will undeniably help to speed up Cambodia’s infrastructure development projects, including those ones under the BRI. With the access to China’s market, our infrastructures are also expected to be improved to meet the new export and logistic standards.
Speaking of the Belt and Road Initiative, Cambodia has benefited greatly from the cooperation with China under this framework. From physical infrastructure and connectivity development to trade and tourism, it has contributed significantly to Cambodia’s economy. Projects linked to the BRI such as the Sihanoukville Special Economic Zone (SSEZ) and the Phnom Penh-Sihanoukville Expressway are two ideal examples to show how BRI has helped Cambodia to strengthen its industrial sector and diversify its exports through transport and logistics enhancement.
The BRI is very vital to Cambodia’s economy which has relied on the inflows of FDIs that are conditional to the capability of sufficient physical infrastructures. We believe that the BRI remains a priority agenda for China, and it will help build a win-win cooperation and a shared future based on the political commitment of the leaders of China and Cambodia.
Q: Since the protectionism is rising in the world, China is still persisting in opening up. How do you think of protectionism and unilateralism? Will China’s opening up help drive the recovery and development of China itself and the world’s economy? How do you evaluate the role that China plays in today’s global economy?
A: Cambodia always advocates regional and global integration, especially through trade. Its commitment to liberalization is reflected in its efforts in joining many regional FTAs, including the RCEP, ASEA-China FTA, and others. Protectionism and Unilateralism keep rising indeed. They have not only undermined the world’s multilateral trade system at large, but eroded the trust between countries. Protectionism used by some countries as a weapon for retaliation has made the global economic perspective highly unpredictable. Therefore, China’s commitment to the promotion of opening up through various initiatives is crucial to global trade, considering its great economic impetus.
Khmer Magazine