Survey Report on Utilisation of Free Trade Agreements in Cambodia

Chap Sotharith

from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Cambodia has signed a number of free trade agreements (FTAs) with other member countries of the Association of Southeast Asian Nations (ASEAN) and its main trading partners in the region. However, due to its limited production capacity, Cambodia has not yet fully utilised these FTAs and has not maximised the benefits from them. In contrast, Cambodia has made much more use of other preferential trade systems such as the Generalized System of Preferences (GSP) and most-favoured nation status to export products to developed countries such as the United States, Canada, the European Union, Japan, and others. However, it is not clear whether private sector firms, which are supposed to be actors in implementing the FTAs, know how to use them effectively and benefit from them. This study aims to explore how familiar the private sector in Cambodia has become with FTAs and how firms can optimise the use of FTAs to maximise their benefits. The survey finds that no company in Cambodia has used FTAs, and that the majority of firms are familiar only with the term ‘FTA’ and are not clear about the details of these trade agreements and how they can participate in order to benefit from them. Difficulties in becoming involved with FTAs include lack of information, high costs, and complications in trade procedures.

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http://www.eria.org/RPR_FY2013_No.5_Chapter_4.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:era:chaptr:2013-rpr-05-04

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