CAMBODIA AND UNLOCKING TRADE AGREEMENTS

CAMBODIA

AND UNLOCKING

GLOBAL MARKETS
BY LEVERAGING FREE
TRADE AGREEMENTS

Distributed by:

FOREWORD

Since joining the Association of Southeast Asian Nations (ASEAN) in 1999 and the World Trade Organization (WTO) in 2004, the Royal Government of
Cambodia has been focused on economic and market diversification via active participation in regional and global economic integration.
The Rectangular Strategy - Phase 4 of the Royal Government of Cambodia (RGC), and the Cambodian Industrial Development Policy (IDP) 2015-2025 both
serve as strategies to guide the country's economic development and accelerate economic diversification, strengthening competitiveness in the production
and export of goods to international markets. This will allow Cambodia to achieve its vision of becoming a high middle-income country by 2030, and a
high-income country by 2050.

The Ministry of Commerce (MoC) has worked closely with relevant ministries and institutions to open new markets through the negotiation of Free Trade
Agreements at both the regional and bilateral levels. These agreements are permanent and based on legal principles, rather than relying on unilateral tariff
preferences. Since joining ASEAN in 1999 and the WTO in 2004, Cambodia has actively participated in negotiations with other ASEAN members and
established the ASEAN Plus One Trade Agreement with dialogue partners including China, Japan, South Korea, India, Australia, and New Zealand.

The MoC has recently led negotiations, working closely with relevant ministries and institutions and the private sector, to conclude new Free Trade
Agreements, including the Regional Comprehensive Economic Partnership Agreement (RCEP), the Cambodia-China Free Trade Agreement, and the
Cambodia-Korea Free Trade Agreement. In addition to these FTAs, the Ministry of Commerce is currently leading negotiations with other major partners, such
as the Eurasian Economic Union, India, Russia, Japan, Mongolia, and the United Arab Emirates in an effort to diversify the economy and markets and promote
the export of Cambodian products to support national economic growth.

However, the spread of COVID-19, the impacts of climate change, and the high price of oil and gas due to the current crisis between Russia and Ukraine, have
seriously affected the global economy, including Cambodia’s. Maintaining a multilateral, rules-based trading system is essential for the recovery of the global
and regional economy.

The entry into RCEP, the world's largest Free Trade Agreement, which includes 15 member countries, 10 of which are ASEAN members, and five ASEAN
trading partners: Australia, New Zealand, China, Japan, and South Korea, will contribute to boosting and reviving the regional economy. This agreement
covers markets with a total population of 2.2 billion, or 30% of the world's population, with a total GDP of USD26.2 trillion, or 30% of global GDP, and
approximately 28% of global trade. According to studies by the Economic Research Institute for ASEAN and East Asia (ERIA), the completion of RCEP will
result in an additional 7.3% in exports, a 23.4% increase in investment, and a 2 % increase in GDP for Cambodia.

i

A recent study by the Economic Research Institute for ASEAN and East Asia (ERIA), the Ministry of Economy and Finance (MEF), and the MOC. showed that
Cambodia's exports are expected to increase by 9.4 % to 18% leading to an expected increase in tax revenue of 2% to 3.9%, expected employment growth of
3.2% to 6.2%, and expected GDP growth of 2% to 3.8%.
The RCEP also establishes a new, modern legal framework that promotes reforms in both the legal and institutional infrastructure to ensure Cambodia's
meets international standards. This will allow Cambodia to graduate from its status as a least developed country in the next five years and achieve
Cambodia’s Vision 2030 and 2050 goals.
I would like to express my sincere appreciation to H.E. SIM Sokheng, Secretary of State of the Ministry of Commerce and Lead of the RCEP Trade Negotiation
Committee for Cambodia, H.E. KAO Kosal, Director General of the General Directorate of Trade Promotion, and officials from the Department of Trade Policy
for preparing and compiling this valuable document, which will benefit small and medium enterprises by helping them to better understand market
diversification and leverage the benefits of Free Trade Agreements such as the RCEP Agreement.
I would also like to acknowledge the support of the Australian government's Department of Foreign Affairs and Trade through the Cambodia-Australia
Agricultural Value Chain (CAVAC) program for cooperating with and supporting the Ministry of Commerce thus far. Finally, I sincerely thank the relevant
ministries, institutions, and private sector for their close cooperation in promoting trade and diversifying Cambodia's export markets.

PAN Sorasak
Minister of Commerce

ii

Contents

1. Unlocking Global Markets 01 3.3.10 Electronic Commerce 11
3.3.11 Competition 12
2. Cambodia and Economic Integration 02 3.3.12 Small and Medium Enterprises 12
3.3.13 Economic and Technical Cooperation 12
2.1 Regional Free Trade Agreements 02
2.2 Bilateral Free Trade Agreement 03
03
2.2.1 Cambodia-China Free Trade Agreement 03
2.2.2 Cambodia-Korea Free Trade Agreement

3. Cambodia and the Regional Comprehensive

Economic Partnership Agreement (RCEP) 04

3.1 Overview and Features of the RCEP 04

3.2 Potential Impact of the RCEP on 05
Cambodia’s Economy
06
3.3 Summary of the Main Chapters of the RCEP 06
06
3.3.1 Trade in Goods 07
3.3.2 Rules of Origin 08
3.3.3 Customs Procedures and Trade Facilitation 08
3.3.4 Sanitary and Phytosanitary Measures
3.3.5 Standards, Technical Regulations, and 09
10
Conformity Assessment Procedures 11
3.3.6 Trade Remedies 11
3.3.7 Trade in Services
3.3.8 Investment
3.3.9 Intellectual Property

1. Unlocking Global Markets To prepare for the digital economy and the
Fourth Industrial Revolution, the government
The Royal Government of Cambodia has taken is standardising commercial laws and
several steps to promote global trade, including regulations, strengthening human resources,
the launch of the Rectangular Strategy - Phase 4 and promoting more effective law enforce-
of the National Assembly, which focuses on ment.
economic development through diversification
and competitiveness. The government is also improving border
trade and facilitating trade with neighbouring
countries to ensure the sustainable export of
agricultural and processed products.

The government also introduced the Cambodia Industrial Development Policy Finally, the government has developed e-commerce strategies to promote the sustainable
(IDP) 2015-2025, which aims to promote the growth of the country's industrial growth of e-commerce through coordinated efforts in the public sector, to improve the
sector through economic diversification, enhanced competitiveness, and produc- e-commerce environment and respond to the specific needs of the sector through interac-
tivity. tive action plans.

In addition, the government is working to integrate the Cambodian economy into
the regional and global economy through increased production capacity, the
supply of goods and services, export and market diversification negotiations.

01 Cambodia's Free Trade

2. Cambodia and Economic Integration 2004 2007
2.1 Regional Free Trade Agreements
ASEAN-China Free Trade Agreement ASEAN-Republic of Korea Free 2008
Cambodia became a member of the Association of Southeast Asian Nations (ACFTA): signed in 2004, entered Trade Agreement
(ASEAN) in 1999 and has actively participated in the organisation until it into force in July 2005, reducing, (AKFTA): entered into force ASEAN-Japan Free Trade
became ASEAN Economic Community in 2015. As part of this community, or eliminating tariffs in excess in 2007 with tariff reductions Agreement (AJFTA): entered
Cambodia reduced tariffs on 99.65% of total tariff lines (excluding CLMV of 7,000 tariff lines by year 2010, of 90%. into force in December 2008,
countries, which reduced tariffs on 98.86% of total tariff lines) to 0-5%. and by 2015 for CLMV countries. reducing tariffs to zero by 87%.

In 2004, Cambodia also became a member of the World Trade Organization 2010
(WTO), allowing it to import goods into the world market at a lower Most
Favoured Nation (MFN) rate to all WTO member countries and enjoy preferential ASEAN-Australia-New Zealand Free 2010 2019
tariffs as a Least Developed Country. Trade Agreement (AANZFTA):
In addition to the ASEAN Free Trade Agreement (AFTA), Cambodia has also entered into force in January 2010, ASEAN-India Free Trade ASEAN-Hong Kong, China Free
participated in negotiations for Regional Free Trade Agreements with some of reducing tariffs on 90% of the total Agreement (AIFTA): entered Trade Agreement (AHKFTA):
ASEAN's Dialogue Partners, including: tariff line. into force in January 2010, entered into force in June 2019,
reducing tariffs on 90 % granting tariff free access to all
of the total tariff line. products originating from AMS.

For more information of FTAs above, please visit below link:
https://asean.org/free-trade-agreements-with-dialogue-partners/

In addition to the Free Trade Agreements above, Cambodia also benefits from
preferential tariffs offered by the European Union (EU EBA), the United States (US GSP),
and the United Kingdom (UK GSP). This means that Cambodia can export a wide
variety of goods to these markets without incurring import duties or quotas. This
provides significant advantages for Cambodian businesses looking to expand their
international reach and increase their competitiveness in these markets.

Cambodia United Kingdom
(UK GSP)

European Union America
(EU EBA) (US GSP)

Cambodia's Free Trade 02

2.2 Bilateral Free Trade Agreements Under the China-Cambodia Free Trade Agreement (CCFTA), 8,337 tariff lines, or 97.53% of
total tariffs, are subject to preferential tariffs of 0%. These tariff lines include:
2.2.1 Cambodia-China Free Trade Agreement (CCFTA)
Agricultural products:
The Cambodia-China Free Trade
Agreement was formally concluded vegetables, fruits, nuts, cereals, live animals, meat, fish, other aquatic
on July 20, 2020 and signed on animals, dairy products, and honey
October 12, 2020 via video conference.
It entered into force on January 1, 2022. Processed agricultural products:

The agreement aims to: industrial crops, gums, resins, animal and vegetable fats and oils,
prepared foodstuffs, beverages, spirits, vinegar (excluding tobacco
Reduce and eliminate customs duties and non-tariff barriers, ensuring that and white sugars)
standards, technical regulations, and conformity assessment procedures do
not become trade barriers Industrial products:

Liberalise and facilitate trade in various mineral products, products of the chemical or allied industries,
services and procedures for service such aspharmaceutical products, other substances, and plastics
delivery, as well as protect, promote, and and products thereof.
attract investment
For more information on the CCFTA, please visit the link below:
Diversify and enhance economic, trade, https://www.moc.gov.kh/official-documents?category_id=6
and investment links between the two
parties 2.2.2 Cambodia-Korea Free Trade Agreement (CKFTA)

Strengthen bilateral cooperation between The negotiations for the
Cambodia and China in line with the Belt CKFTAbegan in July 2020,
and Road Initiative and the agreement was signed
on October 26, 2021.
Establish a structure for implementing the agreement and defining
dispute resolution mechanisms. Cambodia ratified the
agreement on January 29, 2022.

The China-Cambodia Free Trade Agreement includes the following tariff The CKFTA aims to:
reductions for Cambodia:
Achieve trade liberalisation between the parties in accordance with international trade law
Immediate elimination of 0% tariffs for 5 years on 6 0% tariffs over 20 years on 5% tariffs on 30 tariff lines, Promote competition between the parties, especially economic competition
tariffs on 8,328 tariff lines, Promote transparency in trade and investment measures through the sharing of excellent regulation and promotion
which represents 97.44% tariff lines, representing 2 tariff lines, representing representing 0.35% of all of innovation in areas of mutual interest
of all tariff lines Establish a framework for further cooperation to expand and enhance the usefulness of the agreement
0.07% of all tariff lines 0.02% of all tariff lines tariff lines. Promote exports and increase production volume
Promote national economic growth and improve living standards for the people.

03 Cambodia's Free Trade

Under the CKFTA, the Korean market is open In addition
to Cambodia for 95.03% of total tariff lines,
with 92.37% of those tariff lines being Cambodia enjoys 0% tariffs on rice processed food
eliminated once the agreement goes into (noodles, pastries, and crispy cakes) and agri-processed
effect. Compared to other trade agreements products (bird's nest, fish processed products, longan,
to which both parties are members, coconut processed products).
the CKFTA provides additional market
access for Cambodia: 3. Cambodia and the Regional Comprehensive Economic
Partnership Agreement (RCEP)
• 4.35% (533 tariff lines) more than
the RCEP (90.68%). 3.1 Overview and Features of the RCEP

• 5.05% (618 tariff lines) more than The RCEP is the world's largest free trade agreement, comprising 15 member countries,
the AKFTA (89.98%). including ten ASEAN member countries and five ASEAN trading partners: Australia, New
Zealand, China, Japan, and South Korea. Negotiations for RCEP began in 2012 in Phnom
• 5.13% (628 tariff lines) more than Penh, Cambodia, and the agreement was signed on November 15, 2020. It entered into
the GSP under the WTO framework force on January 1, 2022.
(89.90%) for least developed
countries (LDCs). THAILAND VIETNAM

This agreement will boost Cambodia's exports to the Republic of Korea, including MYANMAR BRUNEI
previously exported goods at a 0% tariff rate. These goods include: CAMBODIA
LAOS
PHILIPPINES

Industrial goods: MALAYIA
bicycles, rubber, electronic components, furniture, INDONESIA
biscuits, white sugar, sugar cane, handbags,
suitcases, cords, electrical wiring, sports SINGAPOR
equipment, textiles and clothing, footwear, and
computer accessories. 30% 30% 28%

Agricultural products: RCEP has created markets for $ 26.2 trillion or 30% Of global trade
pepper, cashews, yellow bananas, potatoes, 2.2 billion people or 30% of of global GDP
mushrooms, mangosteen, coconut, pineapple, the global population
watermelon, durian, guava, turmeric, corn, tobacco,
coffee beans, some meats and aquaculture.

Cambodia's Free Trade 04

Four Key Features of the RCEP Agreement: 3.2 Potential Impact of the RCEP on Cambodia's Economy

Modern: According to the results of negotiations and studies by the Institute for Economic
Research for ASEAN and East Asia (ERIA), the RCEP is expected to lead to a 7.3 %
The RCEP Agreement promotes e-commerce and annual increase in Cambodia's exports, a 23.4 % increase in investment, and a 2 %
the potential of small and medium enterprises in increase in GDP.
the age of digital transformation, as well as the
deepening of regional value chains and the In a recent study by ERIA1 , the Ministry of Economy and Finance found that
complexity of market competition. Cambodia's exports are expected to increase by 9.4 % to 18% leading to an expected:

Comprehensive: 2% - 3.9% 3.2% - 6.2% 2% - 3.8%
The RCEP Agreement comprises 20 chapters and
covers many areas not previously included in ASEAN expected increase expected increase expected increase in GDP
Plus One FTAs, such as trade in goods, rules of origin, in tax revenue in employment
customs procedures and trade facilitation, sanitary
and phytosanitary measures, standards, technical
regulations and conformity assessment procedures,
and trade remedies.

(Source: Regional Comprehensive Economic Partnership; Inspirations, Challenges, and Future Growth of East Asia and ASEAN (2022)

High-Quality: Major products from Cambodia subject to preferential tariffs under the RCEP include:

The RCEP Agreement addresses the issues neces- កមុជ� ទទលួ បានភពអនុេ្រគាះពនព� ីកិច�្រពមេ្រពៀងេនះេលទី នំ ញិ សខំ ានៗ់ ជេ្រចនី មាន៖
sary to support the parties' engagement in global and
regional supply chains, and complements market Agricultural cashews, corn, coconut, fresh mango,
access commitments with trade and investment Product: banana, sweet potato, honey, turmeric
enabling rules that are business-friendly while also powder, orange, papaya, etc.
preserving legitimate public policy objectives.

Mutually beneficial: noodles, biscuits, birds' nest, fish
Agricultural processing products, cassava starch,
$ The RCEP Agreement brings together countries with Processing: coconut processing products, peanut
diverse levels of development, recognising that its
success will depend on its ability to bring mutual oil, sausage, chili sauce, banana jam,
benefits to all parties.
etc.

Industrial bicycles, clothing, footwear, electronic
products: components, electrical cables, furniture,
white sugar, sugarcane, handbags, etc.

05 Cambodia's Free Trade

3.3 Summary of the Main Chapters of the RCEP Level of Liberalisation of ASEAN FTA Partners (AFPs)

3.3.1 Trade in Goods AFPs Number of Tariff Lines Percentage
Australia 5689 92.00%
The Trade in Goods Chapter of the RCEP contains key elements that govern the imple- China 7491 90.50%
mentation of goods-related commitments to achieve a high level of trade liberalization Korea 11096 90.63%
among the parties. These include: Japan 8138 89.52%
New Zealand 6863 91.81%
7. the application of fees 6. Administration of import
and formalities connected licensing procedures
with imports and exports.
1. Granting national treatment
to the goods of the other parties

2. Reducing or eliminating 3.3.2 Rules of Origin (ROO)
customs duties and allowing
for the duty-free temporary The ROO chapter of the RCEP determines where goods originated under the
admission of goods agreement and therefore eligible for preferential tariff treatment.

3. Eliminating scheduled 5. Greater transparency It lists the minimal operations
export subsidy entitlements in the application of and processes that are
for agricultural goods non-tariff measures considered insufficient to
confer originating status on
4. General elimination of quantitative goods using non-originating
restrictions and non-tariff measures materials.
that complement tariff liberalisation
outcomes

This chapter also sets out rules for determining the applicable tariff treatment in The ROO Chapter includes provisions for the declaration of origin by approved
cases where different tariff preferences are applied by a party. exporters and the declaration of origin by all exporters or producers, the latter
of which will be implemented within a certain period of time after the entry into
force of the RCEP Agreement for each party. The RCEP allows for the use of raw
materials from other parties to produce goods.

Cambodia's Free Trade 06

The ROO Chapter has two annexes: Benefits of the Rule of Origin:

12 The use of common rules to export preferential goods to RCEP markets

The Product-Specific Rules, which Minimum Information Requirements, EXPORT
cover 5,205 tariff lines at the HS listing the required information for a
6-digit level Certificate of Origin or a Declaration
of Origin
IMPORT

What are the rules of origin and The RCEP's rules of origin are Additional rules can help Cambo-
why are they needed? simpler and easier to fulfill than dia to import items from member
those of some trade agreements, countries, process them, and
The rules of origin are measures used to determine depending on the products. export them to RCEP markets,
the origin of a country's goods or products. In the easily meeting the rules of origin.
context of the RCEP Agreement, the rules of origin
are used to determine the origin of the member 3.3.3 Customs Procedures and Trade Facilitation (CPTF)
countries' goods or products in order to obtain The objectives of the (CPTF) are to:
preferential treatment when imported into RCEP
markets. Promote the efficient Encourage cooperation
between the customs
When goods or products comply with the RCEP 01 administration of customs 03 authorities of all Parties 05
rules of origin, the member country's authorities will procedures and the swift
issue a Certificate of Origin (CO) from RCEP.
clearance of goods by

each Party

Ensure the consistent, Simplify and harmonise Facilitate trade between
the Parties, including the
transparent, and predictable 02 customs procedures with 04 improvement of global and
relevant international regional supply chains.
application of customs laws
and regulations by each Party standards as much as possible

07 Cambodia's Free Trade

The RCEP Agreement includes the following features related 3.3.5 Standards, Technical Regulations, and Conformity
to customs procedures and trade facilitation: Assessment Procedures (STRACAP)

Release of goods within Use of information The objective of this chapter is to facilitative trade in goods among
48 hours and release of technology to support the parties by:
perishable goods within customs clearance and
6 hours from customs expedite release as much
as possible
Enhance the implementation Strengthening information exchange and cooperation Providing a framework to
of the TBT Agreement among the Parties in the fields of standards, technical realise these objectives.
regulations, and conformity assessment procedures
including in the work of relevant international bodies

Advance issuance Additional trade Implementation of risk
of HS, ROO, and CV facilitation measures management approaches
within 90 days for licensed operators for customs and
post-clearance audits.

3.3.4 Sanitary and Phytosanitary Measures (SPS) Ensure that standards, Promotion of mutual understanding Addressing the issues that may
technical regulations, and of each Party’s standards, technical arise under this chapter
The SPS Chapter establishes the foundation for the development, adoption, and conformity assessment regulation, and conformity assessment
application of sanitary and phytosanitary measures (SPS) to protect human, procedures do not create procedures
animal, and plant health. unnecessary obstacles to
The effective implementation of this chapter will ensure that SPS measures are trade
only used to the extent necessary to protect health, minimise trade restrictions,
and do not discriminate against parties with similar conditions. These objectives will be achieved through provisions that:
The Parties recognise their rights and obligations under the WTO Agreement on
the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and Recognise the important These objectives 2
have agreed to certain provisions to enhance the implementation of the multi- role that international will be achieved
lateral Agreement. standards, guides and through provisions Ensure that standards, technical
recommendations can regulations, and conformity
Sanitary play in reducing that: assessment procedures are
unnecessary technical consistent with the relevant
08 Cambodia's Free Trade barriers to trade provisionsof the TBT Agreement.

1

Benefits for exporters: The Trade Remedies Chapter is included in the RCEP Agreement to:
Provide a shield for domestic industry
01 Removal of duplicate testing, inspection, Facilitate trade liberalisation through the reduction or elimination of tariffs
and certification of goods in the target under the Free Trade Agreement. This can lead to increased competition and
country and related costs. the potential for "excessive" imports, which may cause or threaten serious damage
to the local industry.
02 Reduce the cost of shipping,
which does not require the Key components of Safeguard Measures under the RCEP:
return of the product to the
country of origin, in case the Safeguard measures can be used when imports from RCEP member
customs in the target coun- countries increase sharply and cause or threaten serious damage to local
try reject the goods. industries producing similar products.

03 Reduce the time required to
enter foreign markets by
removing duplicate testing
or additional requirements.

3.3.6 Trade Remedies

The Trade Remedies chapter of the RCEP Agreement consists of two sections:

1 The Safeguard Measures 2 The Anti-Dumping and Safeguard Measures Form Increase customs tariffs
Section Countervailing Duties section
200 Day
Provides the Parties with a transitional Reaffirms and builds upon the Parties'
mechanism to address serious injury rights and obligations under relevant Temporary measure
or the threat of serious injury to the agreements in the WTO. This section also (200 days)
domestic industry caused by Parties' includes an Annex on Practices Related to
commitments under RCEP. Anti-Dumping and Countervailing Duties
Proceedings, which aims to promote
transparency and due process in trade Suspend the tariff
remedy proceedings. reduction

Cambodia's Free Trade 09

Period of Safeguard Measures: Parties 3.3.7 Trade in Services

can last for up to may request dispute settlement through The Trade in Services Chapter of the RCEP Agreement aims to facilitate greater trade
the forum and mechanism provided in in services among the Parties by substantially removing restrictive and discriminatory
3 years (with the the agreement. measures affecting trade in services.
possibility ofextension for
an additional year.) This chapter includes modern and comprehensive provisions on:

Key components of Anti-Dumping and Countervailing Duties and tariff measures Market access National treatment
under the RCEP:

Safeguard measure can be used when:

01 There is an evidence 03 Producing similar Local presence, which are subject
of dumping margins products to the Parties' Schedules of Specific
Commitments or Schedules of
or countervailable Reservations and Non-Conforming
Measures, as well as additional
subsidies commitments. Most-favored-nation treatment

causing or threatening The Parties are required to schedule their service commitments using the negative
material damage to local or list approach, either on the date of entry into force of the RCEP Agreement or within a
defined time period after the date of entry into force. The negative list approach
02 slow-growing local industries provides greater certainty for service suppliers of other Parties by providing informa-
tion on the existing measures and regulations of each Party.

Safeguard measures are This Chapter includes three important annexes:

Temporary measures 1. The Annex on Financial Services supports 2. The Annex on Telecommunications Services
that can last for up to four to six months financial services measures and policies that provides a framework of rules related to trade in public
May involve increasing customs tariffs aim to protect the stability of the financial telecommunications services, including approaches
or adjusting fees. system. to regulation, international submarine cable systems,
unbundling of network elements, access to poles,
The period of safeguard measures ducts, and conduits, and international mobile roaming.

can last for up to 3. The Annex on Professional Services enables Parties
to the RCEP Agreement to define professional services
5 years (with the possibility for two or more interested Parties.
of extension)

10 Cambodia's Free Trade

3.3.8 The Investment It includes provisions covering the four It also affirms the right to fully use the flexibility recognised in the Doha
pillars of investments - protection, Declaration on the TRIPS Agreement and Public Health, and includes
The Investment chapter of the RCEP liberalisation, promotion, and facilitation - provisions related to genetic resources, traditional knowledge, and folklore.
Agreement aims to create an enabling which upgrades and enhances the existing
investment environment in the region. ASEAN Plus One FTAs.

The chapter includes a most-favoured-nation 3.3.10 Electronic Commerce Enhancing cooperation among
treatment clause and commitments on the the Parties for e-commerc
prohibition of performance requirements that The aims of the Chapter are to: development.
go beyond multilateral obligations under the
WTO Trade Related Investment Measures Promotes e-commerce
(TRIMS)Agreement. among the Parties
and the wider use
It also includes an annex on Reservations List two, which provides for the Parties' investment of e-commerce globally
commitments using the negative list approach with standstill and ratchet mechanisms.
Creating a confident and
The chapter includes improved investment facilitation provisions, including investor aftercare trusting environment for
such as assistance in resolving complaints and grievances. e-commerce development

3.3.9 Intellectual Property Recognising the increasing digitalisation of trade, this chapter includes provisions to
encourage the Parties to improve trade administration and processes by the use of
The Intellectual Property chapter of the RCEP Agreement aims to electronic means.
reduce barriers to trade and investment by promoting economic
integration and cooperation through the appropriate and effective It requires the Parties to adopt or maintain a
protection and implementation of intellectual property rights. legal framework for the protection of
personal information of e-commerce users
It covers copyright and related rights, trademarks, geographical indica- and provides protection for consumers using
tions, industrial designs, patents, layout-designs of integrated circuits, the internet.
protection of plant varieties, and protection of undisclosed information
as outlined in the TRIPS Agreement. The Chapter also addresses data-related
issues and recognises the parties' policy
In recognition of the digital age, the chapter includes provisions for the space and reaffirms the current practice of
modernisation of intellectual property, such as electronic filing of not imposing customs duties for electronic
applications, technological protection measures, and the implementa- transmissions as per the WTO Ministerial
tion of digital rights. Decision.

However, due to the different levels of development among the Parties of the RCEP Agreement, the
implementation of some commitments under this chapter may vary among the Parties.

Cambodia's Free Trade 11

3.3.11 Competition 3.3.12 Small and Medium Enterprises (SMEs)

The Competition chapter of the RCEP Agreement The Parties of the RCEP Agreement recognise
aims to promote competition in markets and laws in the significant contributions that small and
order to enhance economic efficiency and consumer medium enterprises (SMEs) and
welfare. It requires the Parties to adopt or maintain micro-enterprises make to economic growth,
competition laws and regulations that prohibit employment, and innovation. To support these
anti-competitive activities and to establish or businesses, the Parties commit to promoting
maintain authorities to implement such laws. The information sharing and cooperation to
Chapter also recognises the sovereign rights of each increase SMEs' ability to take advantage of the
Party to develop and enforce its own competition opportunities presented by the RCEP
laws, as well as the differences in capabilities and Agreement, such as integration into regional
levels of development among the Parties. supply chains.

It includes provisions for the application of competition To further this goal, the Parties are required
laws and regulations to all entities engaged in to establish and maintain a publicly
commercial activities, with the possibility of exclusion accessible information platform containing
or exemptions based on grounds of public policy or the full text of the RCEP Agreement, trade
public interest. and investment-related laws and regulations
relevant to SMEs, and other business-related
information that would be useful for SMEs to
benefit from the agreement. This platform
will serve as a resource for SMEs to gain a
better understanding of the RCEP and how
they can use it to their advantage.

3.3.13 Economic and Technical Cooperation (ECOTECH)

This chapter focuses on supporting the

The objective of this chapter is to implementation of technical assistance
provide a framework for economic and
technical cooperation among the programs and the effective and efficient use
Parties in order to narrow development
gaps and maximise mutual benefits. of the RCEP Agreement, particularly in the

areas of trade in goods, services,

investment, intellectual property,

The chapter also provides for technical competition, SMEs, and e-Commerce.
cooperation activities to build necessary capacities
for competition policy development and
competition law enforcement.

This chapter also covers consumer protection, Priority will be given to activities that provide capacity building and technical assistance for developing
with obligations to adopt or maintain domestic and least-developed country Parties. The Parties also recognise the importance of SMEs, including
laws and regulations that prohibit misleading micro-enterprises, in contributing to economic growth, employment, and innovation and therefore seek to
practices or false or misleading descriptions in promote information sharing and cooperation to increase SMEs' ability to take advantage of the
trade, improve awareness of, and access to, opportunities provided by the RCEP Agreement, such as integration into regional supply chains. The
consumer redress mechanisms, and cooperate Parties commit to promoting the sharing of RCEP-related information relevant to SMEs through the
on matters of mutual interest related to establishment and maintenance of a publicly accessible information platform.
consumer protection.
For more detail of the RECP’s information, please follow this link:
12 Cambodia's Free Trade https://www.moc.gov.kh/official-documents?category_id=6

For more information on official articles, please contact

https://www.moc.gov.kh/
Ministry of Commerce of Cambodia

No. 19-61, Confederation de la Russie Blvd (110),
Phnom Penh, Cambodia.
Tel៖ (855) 23 866 469

Distributed by: