Kingdom, WTO call on US to drop tariffs

Wednesday, 09 November 2011
Don Weinland
The Phnom Penh Post

Both Cambodia and the World Trade Organisation this week called on the United States to follow China’s lead in promising zero-tariff treatment to Least Developed Countries.

Chinese President Hu Jintao, in a speech at the G20 summit in Cannes, France, on Friday, announced China would grant duty-free status to 97 per cent of its taxed imports from LDCs such as the Kingdom, provided they had diplomatic relations with China.

The move was designed to prompt among developed countries a similar agreement, which awaits the conclus-ion of the Doha Development Round of trade negotiations among WTO members, Hu said.

Cambodian officials responded positively to Hu’s sentiments, eager to lower trade barriers on the Kingdom’s narrow basket of exports.

Poor nations meet in Cambodia to discuss trade, financial woes

SIEM REAP, Cambodia (AFP) — Poor countries must use trade as a tool to survive the financial crisis gripping richer nations, Cambodia's premier told a meeting of officials from developing countries Wednesday.

Trade ministers and representatives from nearly 50 nations under the Least Developed Countries grouping gathered for two days of talks in Cambodia's northwestern tourist town of Siem Reap.

Opening the meeting, Cambodian Prime Minister Hun Sen said the world's poorest nations were already suffering "a strong trade barrier", with tariffs and strict controls hampering their access to world markets.

With richer governments now suffering from the credit crunch, they may also cut foreign aid, investment and imports, he said.

Hun Sen called on the grouping to find ways to work together to expand exports and attract foreign private capital to help develop their countries.

"Although the world is facing the current financial crisis we must ensure a transparent, stable and feasible business climate," Hun Sen said.

World Trade Organization director general Pascal Lamy told officials at the meeting that the trade deal was now more important than ever to help poor countries.

"There is a strong sense that we are all on the same boat and that we must act and coordinate together if we are to lift ourselves," he said, according to an official transcript of his remarks.

He said the international community needed to keep in mind "the interests of its poorest and weakest members and deliver on the promises" of more and better development aid.

The financial crisis will "no doubt have profound, and possibly prolonged, effects" on poor countries, he said.

A statement from the UN Industrial Development Organization and the WTO, which jointly organised the conference, said the talks should focus on speeding up trade reform in poor countries.

The Doha round of WTO negotiations is also slated to be discussed in Cambodia on Wednesday and Thursday, the statement said.

Attempts to hammer out a global trade pact have repeatedly broken down as the world's poorest nations and economic powers trade blows.

Developing countries have been pressing for greater access to agricultural markets in the industrialised world. Developed nations are in return seeking a better deal for their manufactured products in developing markets.

Lamy said on Monday in Geneva that negotiators must redouble their efforts to conclude a new trade deal by the end of the year.

Cambodia urges unity among poor nations on trade

PHNOM PENH, Cambodia (AP) — Cambodian Prime Minister Hun Sen said Wednesday poor countries like his must continue speaking with one voice in the Doha round of global trade talks to ensure their competitiveness with developed countries.

He also lashed out at wealthy nations for maintaining trade barriers that hurt poor countries, such as farm subsidies and high food safety standards.

"Poor countries are always open to products from developed countries, but when we try to enter developed countries, we often are faced with very strong trade barriers," Hun Sen said.

He spoke in a speech opening a two-day conference of industry and trade ministers from 49 so-called least developed countries in Siem Reap province, Cambodia's tourist hub.

Hun Sen called on the countries "to bind together in solidarity and a united voice to lead us to our common success in negotiating" a revival of global trade talks.

The World Trade Organization's Doha Round talks that began in 2001 broke down in July because of a dispute among India, China and the U.S. over tariffs to protect farmers in developing markets.

Hun Sen called for a "win-win" solution to all but said poor countries "must send another clear message" to key players in the negotiation process to ensure "the principle of free and fair trade of the WTO, which is the heart of the development."

Protectionism will only cause more pain to the development prospects of poor countries that are now facing "profound and possibly prolonged effects" from the global financial crisis, WTO Director-General Pascal Lamy said at the conference.

"They will be left with no means to resort to, especially after the initial squeezes of a general economic slowdown," he said in a speech.

He urged WTO members to agree by the end of the year on methods for settling disagreements on agriculture and industry in order to provide "a stepping stone" toward the conclusion of the Doha Development Round in 2009.

WTO chief underscores necessity of deal on Doha trade talk

PHNOM PENH, Nov. 19 (Xinhua) -- A deal on the World Trade Organization's (WTO) Doha round trade talk is an urgent necessity to help poor countries tackle the current global economic crisis, the organization's Director General Pascal Lamy said on Wednesday.

"In the present economic turmoil, what was necessary yesterday has now become indispensable. ... The international community must deliver on both trade and aid," national television TVK quoted him as telling the opening ceremony of the two-day LDC (least developed countries) Ministerial Conference in Siem Reap province.

"I think there is a growing consensus that only multilateral solutions can address the challenges facing the global economy today," he told the delegates, who came from a total of 49 counties to discuss issues related to international trade.

The Doha round World Trade Organization (WTO) talks began in 2001 but broke down in July this year.

A joint press release from the United Nations Industrial Development Organization (UNIDO) and the World Trade Organization (WTO) said that Wednesday's meeting aims to help LDCs integrate their economies into the global trading system.

One of the main topics is "Aid for Trade" (AfT), a package of incentives designed to help overcome structural and resource constraints of least developed countries in exchange for more speedy trade reforms, it added.

Poor nations discuss trade, finance

19th November 2008
AFP

Poor countries must use trade as a tool to survive the financial crisis gripping richer nations, Cambodia's premier told a meeting of officials from developing countries on Wednesday.

Trade ministers and representatives from nearly 50 nations under the Least Developed Countries grouping gathered for two days of talks in Cambodia's north-western tourist town of Siem Reap.

Opening the meeting, Cambodian Prime Minister Hun Sen said the world's poorest nations were already suffering "a trade barrier", with tariffs and strict controls hampering their access to world markets.

With richer governments now suffering from the credit crunch, they may also cut foreign aid, investment and imports, he said.

Hun Sen called on the grouping to find ways to work together to expand exports and attract foreign private capital to help develop their countries.

"Although the world is facing the current financial crisis we must ensure a transparent, stable and feasible business climate," Hun Sen said.

A statement from the UN Industrial Development Organisation and the World Trade Organisation (WTO) that jointly organised the conference said the talks should focus on speeding up trade reform in poor countries.

"This meeting in Siem Reap comes at a crucial time for the global economy," WTO Director-General Pascal Lamy said in the statement.

"The turmoil created by the financial crisis must not distract us from our goal of ensuring that the world's poorest countries have a greater stake in the trading system," said Lamy, who is attending the conference.

The Doha round of WTO negotiations is also slated to be discussed in Cambodia on Wednesday and Thursday, the statement said.

Attempts to hammer out a global trade pact have repeatedly broken down as the world's poorest nations and economic powers trade blows.

Developing countries have been pressing for greater access to agricultural markets in the industrialised world. Developed nations are in return seeking a better deal for their manufactured products in developing markets.

Lamy said on Monday in Geneva that negotiators must redouble their efforts to conclude a new trade deal by the end of the year.

Cambodian PM criticizes rich countries for setting trade barriers against poor ones

PHNOM PENH, Nov 19, 2008 (Xinhua) -- Cambodian Prime Minister Hun Sen on Wednesday criticized rich countries for setting trade barriers against poor ones, while addressing the opening ceremony of the two-day LDC (least developed countries) Ministerial Conference in Siem Reap province.

"Poor countries are always open to products from developed countries, but when we try to enter developed countries, we often face with very strong trade barriers," national television TVK quoted him as telling the delegates from a total of 49 countries to discuss issues related to international trade.

Poor countries like Cambodia must speak with one voice in the Doha round of global trade talks to ensure their competitiveness with developed countries, he added.

The Doha round World Trade Organization (WTO) talks began in 2001 but broke down in July this year.

A joint press release from the United Nations Industrial Development Organization (UNIDO) and the World Trade Organization (WTO) said that Wednesday's meeting aims to help LDCs integrate their economies into the global trading system.

One of the main topics is "Aid for Trade" (AfT), a package of incentives designed to help overcome structural and resource constraints of least developed countries in exchange for more speedy trade reforms, it added.

Cambodia: One of the 49 Least Developed Countries in the World

What Are The World's Least Developed Countries?

Friday, 18 July 2008, 10:26 am
Press Release: UNCTAD

What are the least developed countries (LDCs)?

Forty-nine countries currently are designated by the United Nations as "least developed countries" (LDCs). They are distributed among the following regions:

* Africa (33): Angola, Benin, Burkina Faso, Burundi, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, Sudan, Togo, Uganda, United Republic of Tanzania and Zambia;

* Asia (10): Afghanistan, Bangladesh, Bhutan, Cambodia, Lao People´s Democratic Republic, Maldives, Myanmar, Nepal, Timor-Leste and Yemen;

* Pacific (5): Kiribati, Samoa, Solomon Islands, Tuvalu and Vanuatu;

* Caribbean (1): Haiti.

Establishing the LDC list

The list of LDCs is reviewed every three years by the Economic and Social Council (ECOSOC) of the United Nations based on recommendations by the Committee for Development Policy (CDP).

For its 2006 review of the list, the CDP determined that a country may be designated as an LDC if it meets the following three criteria:

* A "low-income" criterion, based on the gross national income (GNI) per capita (a 3-year average, 2002-2004), with thresholds of US$750 for cases of addition to the list;

* A "human assets" criterion based on a composite index (the Human Assets Index) which consists of indicators on nutrition, health, school enrolment and literacy;

* An "economic vulnerability" criterion based on a composite index (the Economic Vulnerability Index) which includes indicators on natural disasters, trade shocks; exposure to shocks, economic smallness, and economic remoteness.

* For all three criteria, different thresholds are used for addition to and graduation from the list of LDCs. A country will qualify to be added to the list if it meets the three criteria and does not have a population greater than 75 million. A country will qualify for graduation from LDC status if it has met graduation thresholds under at least two of the three criteria in at least two consecutive reviews of the list.

The LDC category was established in 1971. Since then, only two countries (Botswana and Cape Verde) have "graduated" from the category. Cape Verde graduated in December 2007.

Current membership and coverage in the LDC Report

From 4 December 2003 to 21 December 2007 there were 50 countries designated as "least developed": the countries listed above, plus Cape Verde. On that date, Cape Verde "graduated" from the list. However, in Least Developed Countries Report 2008(1) - Growth, Poverty and the Terms of Development Partnership, Cape Verde is still included in the group of LDCs because most data in the report do not cover beyond 2006. During that period Cape Verde was still part of the group of LDCs.

U.S., Cambodian senior officials meet on trade, investment

PHNOM PENH, Nov. 21 (Xinhua) -- The United States Trade Representative Susan C. Schwab met with Cambodian Minister of Commerce Cham Prasidh on Wednesday in Cambodia to discuss ways to broaden and deepen bilateral trade and investment ties, said a press release.

Schwab and Prasidh discussed Cambodia's recent strong economic growth, its domestic reform agenda, and implementation of legal and trade reforms committed to under Cambodia's 2004 accession to the World Trade Organization (WTO), said the release from the U.S. Embassy.

"Cambodia is working hard to put the right policies in place to support an open and welcoming environment for trade and investment," said Schwab in the release.

"There has been real progress on the ground. We will continue to work together to build momentum to sustain these reform efforts," Schwab said.

The two officials also reviewed Cambodia's current efforts to improve trade facilitation, protect intellectual property rights and enhance the attractiveness and competitiveness of Cambodia's investment climate, said the release.

Discussions focused on marking the progress Cambodia is making in meeting the benchmarks for implementation of WTO-consistent trade practices, as well as highlighting areas where additional work remains to be done, it said.

The two countries agreed upon a plan of action under the U.S.-Cambodia Trade and Investment Framework Agreement (TIFA), which will add momentum for trade-related reforms within Cambodia, it said.

The two ministers also discussed their mutual interest in a successful conclusion to the WTO Doha negotiations and the instrumental role that Cambodia can play as a least developed country (LDC) in contributing to that outcome, it added.

The visit is the first to the country by a U.S. trade representative and included a bilateral meeting under the TIFA, which was signed in 2006 and is the primary bilateral dialogue between the two governments to discuss implementation of these commitments and other trade and investment related issues.

Total two-way goods trade between the U.S. and Cambodia amounted to 1.95 billion U.S. dollars in the first nine months of this year and totaled 2.2 billion U.S. dollars in 2006.

U.S. foreign direct investment in Cambodia is approximately one million U.S. dollars.

Primary U.S. exports include vehicles and machinery and the U.S. is Cambodia's largest export market. Cambodia's major exports to the U.S. are knit and woven apparel.

Cambodia joined the WTO in 2004 as a least developed country (LDC) and agreed as part of its accession to implement WTO-consistent trading rules over a five-year transition period.

US Congress likely to pass quota-free garment import from Cambodia

US Congress likely to pass quota-free RMG access bill: Congressman McDermott tells BGMEA delegation

Staff Reporter
The New Nation (Bengladesh)

American Congressman Jim McDermott (D-WA) has expressed optimism about the passage of a new trade bill in the US Congress, allowing better market access of readymade garments from Bangladesh and other LDCs to the US market.

He expressed the hope welcoming a delegation from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Anwar-Ul-Alam Chowdhury, at a meeting at the Capitol Hill in Washington on Tuesday, according to a message received here yesterday.

Bangladesh Ambassador to the United States Humayun Kabir and several representatives of the BGMEA were present at the meeting.

Jim McDermott (D-WA) on October 18 introduced the "New Partnership for Development Act (NPDA) of 2007 Bill" in the US House of Representatives.

Bangladesh, Cambodia and other LDCs from Asia will be able to increase their apparel export to the US market if the bill is passed by the House of Representatives and the Senate, and approved by the US President.

If the bill is passed, Bangladesh is expected to be able to increase its apparel export by 18 per cent to the US market alone.

The bill was co-sponsored by nine Congressmen--Joseph Crowley, Phil English, Kendrick, Meek, Diane Watson, Jerry Weller, Earl Blumenauer, Adam Smith and Dan Burton.

Jim McDermott apprised the BGMEA delegation that there were a number of trade-related bills in the Congress for consideration and NPDA might be sequenced in following the passage of those bills.

"The New Partnership for Development Act of 2007 Bill" is likely to come to the committee concerned of the US Congress at any time. We have been lobbying in this regard. We hope that the members of the Congress would support the bill so that it could be passed," he said,

Congressman McDermott, however, requested the delegation to continue to improve their compliance credentials so that concerns in some quarters in the USA could be addressed.

"Bangladesh will have to comply with the international labour laws and address the internal environment in the garment factories," he said.

The Congressman also appreciated Bangladesh's achievement in the field of women empowerment and gender parity in education.

BGMEA president Anwar-Ul-Alam Chowdhury thanked the Congressman for his cooperation in alleviating poverty in the developing world.

Bangladesh Ambassador to the USA Humayun Kabir, who accompanied the delegation, appreciated the Congressman for his leadership and hoped that this will help uplift the conditions of hardworking people in Bangladesh and in the developing world.

The delegation had also meetings with Congressmen Ron Lewis, John Conyers, Adam Smith and Keith Ellison. The delegation apprised them of the latest situation in the RMG industry of Bangladesh and called for their support for the expeditious passage of the bill.

The delegation had a series of meetings with advisers, counselors and legislative assistants of several influential Congressmen and Senators.

With uncertainty ahead, Cambodia turns to US to buoy garment sector

Cambodian garment workers are busy at a factory in Phnom Penh, in October 2006. Safeguards protecting Cambodia's garment sector expire by year's end, and the country hopes the United States, its biggest market, will help stave off a disastrous downturn in the industry which accounts 80 percent of all exports.

PHNOM PENH (AFP) — Safeguards protecting Cambodia's garment sector expire by year's end, and the country hopes the United States, its biggest market, will help stave off a disastrous downturn in the industry which accounts 80 percent of all exports.

Trade officials, led by Commerce Minister Cham Prasidh, were in Washington in July urging US Congress to pass legislation that would slash tariffs on goods from 14 of Asia's least developed countries, or LDCs, including Cambodia.

The measure is the only way to insulate Cambodian manufacturers from a changing global industry that increasingly favours larger producers, like China, with better infrastructure and cheaper production costs.

"We know our quality is the same as the Chinese, we are fighting only over the price," said Cham Prasidh, adding that US tariffs on Cambodian garment exports are between 15 and 25 percent.

"If we don't pay the duty, it means we are competitive," he told AFP in an interview last week.

"Our economy is mainly based on our export of garments ... anything that is affecting this sector is affecting the whole Cambodian economy."

Some 70 percent of all Cambodian textiles go to the US, said Ken Loo, secretary general of the Garment Manufacturers Association of Cambodia (GMAC).

Continued access to that market is crucial to the survival of the garment sector, which was worth 2.5 billion dollars last year and employs more than 330,000 people, mostly young women supporting families in rural Cambodia.

"If we are able to get a reduction or exemption ... it would definitely go a long way to ensure the continued growth and survival of the industry," Loo said.

Cambodia's garment sector was sent into a spin in the first months of 2005 following the end of US textile quotas that guaranteed the country protection from larger competitors.

Factories began closing in rapid succession and thousands of workers were made jobless.

"Safeguard" restrictions imposed on some Chinese textiles in mid-2005 by the US and European Union stabilised the sector, even spurring it on to greater growth.

But while Cambodian trade officials had lobbied Washington for tariff reductions since 2004, their efforts have taken on a greater urgency amid rising fear that the end of Chinese restrictions this year and next could again throw the industry into crisis.

"Our industry suffered significantly" in the months immediately following the expiration of the US quotas, said Loo.

"If safeguards are removed and no new mechanism put in place to restrict China, our industry will suffer similarly," he added.

Foreign diplomats are also closely watching developments, keenly aware of the industry's importance to Cambodia's economic health.

"The entire economy hinges on the success of the garment sector and America must absolutely get rid of the tariffs" if the sector is to survive, said one Western diplomat.

Cham Prasidh said his delegation met with more than 20 members of the US Congress during the July trip, and that "all of them were very supportive."

The Tariff Relief Assistance for Developing Economies, or TRADE Act which cuts tariffs to the 14 Asian LDCs, is already before the US Senate.

A parallel bill extending duty relief to all least developed countries is expected to be brought before the House of Representatives, Cham Prasidh said.

"Some (Congress people) have agreed to co-sponsor, but many of them are waiting to see the new legislation first," he said.

Other US officials point out that tariff relief for poor nations is already being considered within the Doha round of World Trade Organisation negotiations.

But those talks broke down last year, and Cham Prasidh said Cambodia -- as well other poor nations -- cannot wait for a Doha resolution.

"We don't know when these talks are going to be completed -- maybe this year, maybe not," he said.

"So that is the reason why we try to ask that LDCs get this quota-free and duty-free access as an early harvest rather than leave us to wait until the end of the Doha rounds," he added.

"The situation is very critical," he said, but efforts are being frustrated by a fluid political situation in Washington.

Several lawmakers who backed the original legislation are no longer in office, and US presidential elections next year only add to the political uncertainty.

"We continue to believe there is a slim chance to push this bill to be introduced and passed, because they have to find an option," Cham Prasidh said.

"Our bill is so instrumental for the LDCs, and everybody agreed with this perception," he added.

"The only question is whether the political environment will allow this type of bill to be passed."

US Senator introduces bill aimed at providing duty free access to Least Developed Countries [including Cambodia]

3/22/2007
By: Peace Journalism

A trade bill has been introduced in the US Senate recently seeking duty-free access facilities to the products from Nepal and 13 other Least Developed Countries (LDCs) to American market.

Senator Gordon Smith had introduced the 'Tariff Relief Assistance for Developing Economies (TRADE) Act of 2007' before the Senate on March 15 to extend certain trade preferences to a few LDCs including Nepal for the next 10 years.

The statement on objective of the bill said it is in the mutual interest of the United States and the LDCs to promote stable and sustainable economic growth and development.

Trade and investment often lead to employment opportunities and often help alleviate poverty in these LDCs where unemployment is as high as 70 percent.

The bill further said that the US has recognized the benefits of trade to LDCs by enacting the Generalized System of Preference (GSP) and trade benefits for developing countries.

The challenges of the global trading environment for LDCs are even greater given the end of Multi Fiber Agreement (MFA) in 2005, and certain LDCs, including Bangladesh, Cambodia and Nepal , are particularly vulnerable to the changes that will result from the end of that agreement, US reports said.

The bill, co-sponsored by Senator Feinstein, Senator Craig and Senator Sununu, was referred to the Senate Committee on Finance.

However, the Nepali products getting duty-free access to the US market have not been named. It is also not clear if the ready-made garments will qualify for the duty free access. Ready-made garments constitute the single largest export product of Nepal to the United States. Entrepreneurs of garments in Nepal have been appealing for duty free access to the US market ever since the end of MF in 2005 – after which the garment exports to the US have declined by over 60 percent. Source"Nepal News.