PM to Discuss Post-Brexit UK Trade

KHMER TIMES
MAY KUNMAKARA

Cambodia is seeking a new bilateral free trade agreement with post-Brexit UK. Reuters

Cambodia’s $800 million trade relationship with Great Britain will be the topic of conversation between Prime Minister Hun Sen and a visiting senior British trade envoy later this month, amid fears that a recent non-binding referendum supporting the UK’s leaving of the European Union may affect trade, the prime minister said yesterday.

Speaking at a university graduation ceremony, Mr. Hun Sen said that he would lead talks with the visiting British delegation led by Lord Puttnam in an effort to negotiate new trade agreements, outside of the existing Everything but Arms agreement that Cambodian currently has with the EU.

“In October, I will receive a special minister from Britain who will visit Cambodia so that Cambodia can re-negotiate [agreements] at that time.”
“Before, we exported to Britain some $882 million under the trade regime of Europe. But now, we have to negotiate with Britain on whether we still can export under the regime, on whether they still give the preferential trade to us as they use or not.”

Soeng Sophary, spokesperson for the Ministry of Commerce, told Khmer Times yesterday that the ministry is currently looking into what kind of bilateral trade it will pursue with the UK.

“When it is decided to have an FTA [Free Trade Agreement] with the UK, the Ministry of Commerce would surely pursue that goal. In case an FTA could not be achieved, there could still be trading activities between the two countries. It is just that there is no formal arrangement and agreement for this bilateral trade,” Ms.Sophary explained.

“Right after the liberation from the Pol Pot regime, our trading activities were conducted without FTAs and we still reached our current state of development,” she added.

The EU is presently one of Cambodia’s largest trading partners after the United States, accounting for more than 40 percent of the country’s exports. Under the Everything but Arms agreement for least developed countries, Cambodian exports to the EU receive preferential treatment.

British imports of garments and footwear form a large part of exports.

In July, commerce minister Pan Sorasak met with British Ambassador Bill Longhurst, shortly after the “Brexit” referendum, to push for a bilateral FTA as soon as possible.

Ms. Sophary told Khmer Times at the time that Britain would respond to Cambodia by the end of the year, as the country began to deal with the post-referendum trade realities. It has not formally initiated its formal departure from the EU, which requires evoking of article 50.

In an email from the British Embassy to Khmer Times in July, it stated that until the UK had officially left the EU, it would continue to trade under the existing EU-Cambodia arrangements.

“Arrangements for bilateral trade after Britain leaves the EU are to be determined in the period between now and exiting the EU. The United Kingdom’s new departments for international trade and exiting the European Union have made clear the UK’s desire to remain an open trading partner after we leave the EU. This would entail FTAs with a range of trading partners,” the British Embassy said.

Bilateral trade between Cambodia and Britain rose from about $749.01 million in 2013 to $807 million in 2014, according to the Ministry of Commerce. Cambodia’s total exports to Britain in 2014 were $56.45 million.