Cambodia approves ASEAN Trade in Goods Agreement

PHNOM PENH (Xinhua) - Cambodian National Assembly yesterday approved the ASEAN Trade in Goods Agreement, paving the way for the Kingdom to implement trade facilitation and tariff liberalization among ASEAN member countries.

The agreement is aimed at achieving the establishment of the ASEAN market and the ASEAN Economic Community by 2015.

This agreement covers, among others, tariff liberalization, elimination of non-tariff barriers, rules of origin, trade facilitation, customs procedures, standards and conformance, and sanitary and phytosanitary (SPS) measures.

"It will help reduce or omit import tax, favorable tax for good items from the partners and help facilitate private sector for their business, as well as speed up the flow of investment capital from the outside world," said Nin Saphan, chairwoman for the committee of public work, transport, posts and telecommunication, industry, mine, energy, commerce, urbanization, land management and construction.

"Cambodia has prepared itself to join with other countries in regional integration like the ASEAN Trade in Goods Agreement, and for Cambodia, the agreement will come into effect in 2018. So we still have time to take actions for trade deal," said Kong Vibol, secretary of state for the Ministry of Economy and Finance.

"Our country still need the state revenue from the import tax for supporting the state expenditure and development infrastructures and the country is the youngest in ASEAN. Therefore, other members allow us to fully implement the agreement in 2018," he said.

"The agreement will also help narrowing the development gap between the ASEAN's old and new members," he added.

It is said that after 2018, Cambodia is still allowed to charge 5 percent of customs duties on 61 farm products imported from other ASEAN countries.