UAE-Cambodia CEPA Agreement Expected Later In 2023
Local Cambodian officials expect the Cambodia-United Arab Emirates Comprehensive Economic Partnership Agreement (CAM-UAE CEPA) to be signed in Phnom Penh later this year, at the fourth round of formal negotiations for the deal.
A CEPA is a type of free trade agreement (FTA) that is generally designed for a more holistic coverage beyond just commodities, and can contain provisions for services, investments, dispute resolution, intellectual property rights, government procurement, and additional forms of specialised economic cooperation.
The third round of talks is set to be held in Abu Dhabi next month and expected to feature the final technical meetings before the treaty is signed. It follows the first and second rounds held on October 24-25 and December 19-21, respectively. The negotiation rounds are alternately held between Abu Dhabi and Phnom Penh, the capitals of the two countries.
Tekreth Kamrang, of the Cambodian Ministry of Commerce, and Chairwoman of the Cambodian negotiation team for the CAM-UAE CEPA, led a public-private consultative meeting centred on the Kingdom’s formal “offer” and “request” lists under the deal’s trade-in-services framework on January 25th this year.
The meeting also sought to gather input to develop a more common perspective on local interests, to effectively promote investment inflows from the UAE and the Kingdom’s exports to the seven-emirate union, and better enable Cambodian entities to benefit from the CEPA.
Penn Sovicheat, ministry undersecretary of state and deputy chairman of the Cambodian negotiation team, said that all the technical issues should be completed by the end of the third round, and that “two leaders” would sign the pact in the fourth.
Cambodian Commerce minister Pan Sorasak and the UAE Minister of State for Foreign Trade Thani bin Ahmed al-Zeyoudi had signed the declaration of the launch of formal negotiations for the CEPA on October 24 last year.
Sovicheat seemed to think highly of the input from the January 25 meeting, remarking that the CAM-UAE CEPA would be a major impetus for Cambodia’s export diversification drive, especially in the agricultural field. “We hope that this agreement will open new channels for Cambodian goods. Some agricultural products could make their way throughout the Middle East and Africa via the UAE,” he said, calling for local producers to keep their wares up to par in terms of quality and hygiene requirements.
When asked about the expected short duration of the talks as compared to those for Cambodia’s FTAs with mainland China and South Korea, Sovicheat explained that the UAE has experience with CEPAs, having already entered into such agreements with India, Indonesia, and Israel.
Abu Dhabi also wants the CAM-UAE CEPA to be signed within the year, he confirmed. Keo Mom, the CEO of Ly Ly Food Industry Co Ltd, one of the Cambodia’s largest food processing enterprises, reckoned that Cambodian textile-related items may be among the limited volume of goods traded between the two countries, and that most likely, no products made by local small- and medium-sized enterprises (SME) have previously been exported to the UAE. “The deal will open doors for local producers to sell their goods to the UAE market”, she said. “Producers want more export markets, since they not only allow local companies – especially SMEs – to grow faster, but also raise the profile of Cambodian products on the international market.”
According to Cambodia’s Ministry of Commerce ministry, key areas covered by the CEPA talks have included: transportation and distribution, education, accommodations and tourism, business, communications and telecommunications, health, engineering and construction, employment, technology, the environment, and finance.
Cambodia is a member of the ASEAN bloc, which also includes Brunei, Laos, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. UAE businesses who establish operations in Cambodia or any other ASEAN member may take advantage of the intra-ASEAN Free Trade Agreement as well as ASEAN’s Free Trade Agreements with China, India and the RCEP nations providing certain rules of origin criteria are met.
UAE businesses wishing to discuss trade and investment into ASEAN may contact Dezan Shira & Associates at email@example.com. The practice has multiple ASEAN offices and assists foreign investment into the region.
- 2023 Foreign Investment Opportunities in Cambodia
- Cambodia’s Law on Investment: What Foreign Investors Need to Know
Middle East Briefing is produced by Dezan Shira & Associates. We provide foreign investment market intelligence about doing business in the region as well as provide updates on investments into Asia for Middle eastern based international companies from our offices in Dubai. Our firm was established in 1992 and has 28 offices and several hundred research, legal, tax and compliance professionals in our offices through the Asian region.
For assistance with establishing business in the Middle East, or for assistance in analyzing and entering markets elsewhere in Asia, please contact us at firstname.lastname@example.org or visit us at www.dezshira.com.