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Cambodia and the United Arab Emirates (UAE) are scheduled to sign a statement on October 24 to launch formal negotiations on the Comprehensive Economic Partnership Agreement (CEPA), paving the way for boosting bilateral trade and investment.
CEPAs are free trade agreements (FTAs) generally designed to cover a more comprehensive scope beyond goods, and can include provisions for services, investment, dispute resolution, intellectual property, government procurement and professional economic cooperation.
Cambodian Minister of Commerce Pan Sorasak and UAE Minister of State for Foreign Trade Thani bin Ahmed Zeyoudi will sign the declaration at a ceremony in Abu Dhabi, UAE capital, with senior officials and relevant ministries, agencies and the private sector Representatives of the two countries will be present.
Cambodia’s top trade body said in a statement on Oct. 22 that a Cambodian Chamber of Commerce (CCC) delegation led by its president, Kith Meng, will visit Abu Dhabi from Oct. 23-27 to attend the ceremony.
CCC will also collaborate with the Cambodian Ministry of Commerce, the UAE Ministry of Economy and the UAE Federation of Chambers of Commerce and Industry (FCCI) to hold a joint business forum with leaders of ministries and institutions from more than 70 countries of the two countries.
“[Meng] Speeches at the forum will focus on business and investment opportunities, economic situation and potential sectors in Cambodia to promote trade, investment, economic cooperation, digital sector development and SMEs, and examine the possibility of joint projects between Cambodia and the UAE ,” CCC said.
The statement confirmed that the CCC delegation will meet with a number of UAE companies on October 25.
Nguon Meng Tech, director general of the CCC, hailed the start of CEPA negotiations as another step for Cambodia towards a promising market in the Arab world, claiming that the UAE is “one of the fastest growing economies in the world”.
A potential trade deal with the UAE would make Cambodian goods more marketable locally, especially agricultural products, he said, adding that Cambodia could attract Emirati investors to use their funds for food production, namely halal food, for export to a wider range of Arabian market.
Halal food production means that all aspects of ingredients, materials, sourcing, processes, methods and facilities are considered permissible under Shariah, as defined by the holy book of religion, the Quran.
Meng Tech expects CEPA negotiations to be relatively quick and lead to a flood of Cambodian goods entering the UAE market. He proposed fisheries and agricultural products as competitors for Cambodia’s main exports to the UAE.
He said the CCC “will strive to facilitate a wider audience and provide valuable information on Cambodia’s resources to attract more investors from Arab countries”.
Hong Vanak, director of the International Economics Department at the Royal Academy of Cambodia (RAC), suggested that, as a first step, the kingdom tap into agricultural and food exports to the UAE, which he believes is due to the desert environment of the 7-Emirates Alliance.
“After that, Cambodia must work to diversify its market to meet any and all needs abroad,” he said.
Speaking at a video conference on July 4, the Minister of Commerce revealed that the UAE is the 26th largest market for Cambodian exports.
Sorasak listed key exports to the UAE, including textiles, footwear, travel goods, bicycles and milled rice; as well as imports as petroleum products, animal feed, fertilizers, tobacco and ceramics.
Despite Covid-19, Cambodia-UAE trade reached US$151.547 million in 2020, up 52.66% from US$99.271 million in 2020, according to the Ministry of Commerce
Last year, Saudi Arabia’s exports to the UAE amounted to US$52.116 million, an increase of 18.93% from US$43.822 million in 2020, and imports exceeded US$99.431 million, an increase of 79.32% from US$55.449 million.
However, Cambodia’s trade deficit with the UAE widened from $11.627 million a year ago to nearly 306.95 percent to $47.315 million in 2021.
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