US Export Import Bank Open to Cambodia

By Men Kimseng, VOA Khmer
Original report from Washington
28 October 2009

The Export Import Bank of the United States is now open to provide financing for purchases of US exports by private-sector buyers in Cambodia.

The opening follows Cambodia’s removal from a US trade blacklist in June by President Barack Obama, “which has allowed the bank to do a study in order to determine, along with other US agencies, that we should be open to financing import into Cambodia from the United States on repayment terms up to seven years,” Phil Cogan, spokesman for the Ex-Im Bank, told VOA Khmer.

“So what that means is buyers in Cambodia who wish to purchase US high-quality goods and services can do so with potential financing from the United States Export Import Bank that will make their purchases available for financing,” he said.

US export to Cambodia remains small, about $154 million in 2008, compared to $2.4 billion in import from Cambodia. The US products available in Cambodia are vehicles, heavy machinery, electronics equipment, and health and sanitation.

Many local businessmen said they were glad to hear the news.

Cogan said interest rates for Cambodia are at favorable levels, and that even small deals could be made.

The so-called Ex-Im Bank is the official export credit agency of the United States. The federal agency, now in its 75th year, helps to create and maintain US jobs by financing the sales of exports, primarily to emerging markets throughout the world.

Trade Officials Laud Removal From Blacklist

By Men Kimseng, VOA Khmer
Original report from Washington
19 June 2009

The US has removed Cambodia from a list prohibiting financing for US companies, paving the way for more trade, experts say.

Last week the administration of President Barrack Obama deemed that Cambodia had “ceased to be a Maxist-Leninist country,” opening the possibility of loans from the US Export-Import Bank to companies hoping to invest in the country.

This “provides working capital guarantees, export credit insurance, and loan guarantees and direct loans to US businesses,” Debbie Mesloh, a spokeswoman for Obama’s office of the US Trade Representative, told VOA Khmer by e-mail.

Even though it is still early to say what products US companies might export, officials expressed optimism that many companies would be interested in doing business in Cambodia.

“US exporters will be very interested in knowing that in the near future they should be able to receive US Export-Import Bank financing to finance their exports to Laos and Cambodia,” Phil Cogan, spokesman for the US Export-Import Bank, told VOA Khmer by phone. “That’s good for buyers there, and it’s certainly good for US exporters.”

US export to Cambodia last year reached $154 million, mainly in vehicles, electrical machinery, medical equipment and agricultural goods. Imports from Cambodia were $2.4 billion, in clothing and textile products.

Cogan said the US had a good history of providing electrical services, such as hydro-electricity and oil and gas energy, and produces good equipment for the oil industry.

“There are lots of potentials in both of those countries, and the buyers there would certainly be interested in high-quality US goods and service,” Cogan said.

Cambodia is exploring potential offshore oil blocks, with the hopes of producing in coming years.

Cambodian officials suggested that US investors should also focus on agriculture, fisheries and natural resources, in addition to the garment sector.

“There are also mineral resources that Cambodia has for US long-term investment,” Koy Kuong, a spokesman for the Foreign Ministry, told VOA Khmer.

The US move was another signal in strengthening relations between the two countries.

“This is good news in the relationship between Cambodia and the US,” Prime Minister Hun Sen told reporters following the announcement. “I think that what US President Obama did was a good start for the globalization process, which does not distinguish between black and white.”

Kith Meng, president of the Phnom Penh Chamber of Commerce, told VOA Khmer by phone on Tuesday that much economic potential exists for US investment, such as oil and gas, airlines and tourism.

“It is good that the US took Cambodia off of the blacklist,” he said. “This means that Cambodia is now developed, and I hope there will be more US companies investing in Cambodia.”

Thailand shocked and concerned by Obama's lifting of trade blacklist with Cambodia and Laos: Bangkok Post

Shock move by White House

16/06/2009
EDITORIAL
Bangkok Post

The latest decision on Southeast Asia by US President Barack Obama is the second disturbing action by Washington affecting this region. Late last Friday, after the main news cycles for the week had elapsed, Mr Obama announced a major new policy initiative. The low-level statement that he was declaring Laos and Cambodia eligible for major US loans and trade concessions took the rest of the region by surprise.

The first visit to Southeast Asia by Secretary of State Hillary Clinton largely ignored the longest and strongest US allies. Now, the decision to give special treatment to Laos and Cambodia came as a bit of shock, including in Thailand.

Mr Obama's "determination" about each country was a brief official statement, posted at the White House media room and website. Such presidential determinations are legal obligations in many cases in the United States; these were the 20th and 21st of an early presidency. But as these statements showed, they are often "game changers" by the president. In these almost identical statements, Mr Obama declared that Laos and Cambodia are eligible to be beneficiaries of US Export-Import Bank loans for American businesses in those countries.

The reason, Mr Obama said, is that each "has ceased to be a Marxist-Leninist country".

Mr Obama was apparently not concerned with the nuances of Marxist evolution. It was mandatory to declare Laos and Cambodia were not communist countries in order to achieve his true goal - to provide millions, and perhaps billions, of investment capital for American businesses to set up, operate in and trade with the two neighbouring countries.

Mr Obama did not explain why he set this goal. Indeed, the manner of the announcement was to keep all questions and justification to a minimum.

This apparently was to stifle the negative reaction of political groups in the US who are appalled at the treatment of Hmong tribespeople by Laos.

A more important result, however, is that Mr Obama has created negative fallout in Thailand and the region.

The US Exim Bank rarely is involved with Thailand, and generally supports one-time sales rather than investment.

In 2003, it provided support for sales of Boeing 747 aircraft to Thai Airways International, and there are occasional cases where the bank has backed smaller deals. As the Thai economy has developed, the US Exim Bank has been an ever-smaller presence.

That is why Mr Obama's unexpected support for Laos and Cambodia disappointed many in Thailand. For years, Thai businesses have expanded into these countries. The overseas business expansion - ironically with the frequent support of the Exim Bank of Thailand - has been a major engine of Thai growth. This in turn has led to decreasing dependence upon foreign help and special programmes by Washington.

The sudden entry of the US Exim Bank into these Thai markets will affect Thai trade and the economy. By failing to warn and prepare Thai authorities and businesses, the Obama administration has created a shock that will have negative implications, at least at the start.

This problem could easily have been avoided had the White House warned of the coming decision and allowed time for diplomatic talks and business preparations. Failing to do so again begs the question of whether the United States is seriously engaged with its long-time allies in this region.

US moves to counter China in Southeast Asia

June 15, 2009
ABC Radio Australia

The United States has removed Laos and Cambodia from a trade black list, opening the way for American companies to do business with both countries.

US President Barak Obama said on Friday, that both nations were no longer Marxist-Leninist countries. The White House says the policy change is in response to the commitment of both countries to open up their markets.

Presenter: Sen Lam
Speaker: Arthur Waldron is vice president of the International Assessment and Strategy Centre in Washington

Click here to listen to the audio program (Windows Media)

Obama okays U.S. Exim bank loans for Cambodia, Laos

Fri Jun 12, 2009

WASHINGTON (Reuters) - President Barack Obama has cleared the way for the U.S. Export-Import Bank to help finance exports of U.S. goods to Laos and Cambodia, the White House said on Friday.

Obama issued a pair of memorandums saying each of the two Southeast Asian nations has "ceased to be a Marxist-Leninist country," as defined under the 1945 Export-Import Bank Act.

"This designation will now allow U.S. companies to apply for financing thru the US Export-Import bank, which provides working capital guarantees, export credit insurance and loan guarantees," the White House spokesman said.

The policy change in is response to the commitment of both countries to open up their markets, the spokesman said.

It comes as some in Congress are pressing for renewal of U.S. trade sanctions on another Southeast Asian nation, Myanmar, which has charged pro-democracy advocate Aung San Suu Kyi with violating the terms of her house arrest. She faces a maximum five-year term if found guilty of the charges.

Cambodia and Laos, with a combined population of more than 20 million, are small markets for the United States.

Last year, the United States exported $154 million worth of goods to Cambodia and just $18 million to Laos.

U.S. imports of mostly clothing and other textiles from Cambodia totaled more than $2.4 billion last year. The United States bought $42 million worth of goods from Laos in 2008.

(Reporting by Doug Palmer and Ross Colvin; editing by Todd Eastham)

US removes Laos, Cambodia from trade blacklist [-Cambodia is no longer a Marxist-Leninist country ... it is now a Kleptocracy!]

Saturday, June 13, 2009

WASHINGTON (AFP) — US President Barack Obama on Friday removed Laos and Cambodia from a blacklist, opening the way for US loans to companies doing business in the former US adversaries.

In brief declarations, Obama said Cambodia and Laos had each "ceased to be a Marxist-Leninist country," a designation that prevents financial support by the US Export-Import Bank.

The move, which still must go through formalities, means that US businesses would be eligible for US government-backed loans and credit guarantees as they can receive when operating in most countries.

"Given the commitment of Cambodia and Laos to open markets, the president has determined that this designation is no longer applicable," an Obama administration official said.

But the decision to boost trade ties with Laos came under criticism from campaigners for the Hmong minority, a hill people who supported US forces during the Vietnam War and recount retaliatory abuse decades later.

A recent report by Paris-based Medicins Sans Frontieres, or Doctors Without Borders, said Hmong who fled since 2005 to Thailand have said they suffered killings, gang-rape and malnutrition at the hands of Laotian forces.

Obama's declaration "is completely shocking and outrageous," said Philip Smith, executive director of the Center for Public Policy Analysis, which promotes Hmong rights.

"This is a one-party regime which is closely allied with Burma (Myanmar) and North Korea," he said. "This will embolden the Laos government to continue to slaughter and massacre civilians."

Many Hmong are still in hiding in Laos. Another 250,000 Hmong have resettled in the United States.

The United States established normal trade relations with Laos in 2004, part of an effort under then president George W. Bush to reconcile after years of friction.

US relations with Cambodia have been marred by US concerns over accounting for Khmer Rouge war crimes along with corruption. Washington lifted all remaining restrictions on assistance to Cambodia in 2007.

The United States still forbids US-backed loans to businesses to operate in six countries -- Cuba, Iran, Myanmar, North Korea, Sudan and Syria.