Policy-makers underline the need to find out in what sectors Cambodia already has a comparative advantage in the region.
If it doesn't convene, for example, we can see a way our Prime Ministers can sign on the government's behalf. Tariffs, however, are a minor concern compared to the rampant smuggling—encouraged by tariffs—that is a serious obstacle to industries such as steel and gasoline in Cambodia.
The revenues will decrease and we will face a lot of difficulties," maintains a Finance Ministry official.
By importing textiles tariff-free, Cambodian factories could gain a competitive edge. Difficulties have sometimes arisen regarding the evidentiary proof to support the claim, as well as how ASEAN national customs authorities can verify Form D submissions.
It is a training ground. Laos has eliminated tariffs on 7, items in recent years. It has to be phased in strategically and carefully. While Cambodian goods face import Afta cambodia averaging just 3.
ASEAN national Afta cambodia have also been traditionally reluctant to share or cede sovereignty to authorities from other ASEAN members although ASEAN trade ministries routinely make cross-border visits to conduct on-site inspections in anti-dumping investigations.
Progress is slow in that regard and it will take time. Thailand expects to lose a 0. Although the government introduced a value-added tax as a replacement source of revenue, it still needs time to implement this tax comprehensively and ensure that all monies owed are collected. They are not so much laws, but agreements, protocols and memoranda of understanding," says a Finance official.
But Femy Pinto of the advocacy group Oxfam America, who attended a workshop on the initiative in Jakarta in August, is skeptical.
By that time, the government believes, Cambodia will have caught up to its neighbors in terms of agricultural production. Its purpose is to ensure the competitiveness of the region in the global marketplace by liberalizing trade between its members.
No matter what pace government leaders choose, tariff liberalization is part of a global trend that experts concede is inevitable. Asean is counting on its Initiative for Asean Integration, a six-year work plan, to bring the new members up to speed. Among the findings of current imports and exports, and future projections, are: It also says that the agro-industrial field, labor-intensive manufacturing and the tourism sectors show promise, but that Afta cambodia growth and productivity of the above are still relatively low.
If the current decision to take a conservative approach holds, consumers can expect no price reductions during the first year of membership.
Policy-makers operate on the assumption that 78 percent of customs revenues come from cigarettes, beer, soft drinks, motorcycles, petroleum products, televisions, VCRs and radio cassette players. However, a number of Thai sectors should gain substantially from the free trade due to a decline in production costs.
Experts suggested that for Thailand, the challenge continues to be upgrading skills and developing products to serve consumer demand, which will help increase brand awareness, add value and competitiveness to Thai products in global markets. The loss of palm oil market share to Malaysia was forecast at 2.
The report points out the agricultural sector- particularly rice, rubber and wood - is already competitive within limits of sustainable exploitation.
The integration initiative—and AFTA at large—has failed to recognize that economic growth often only benefits an elite few, she said. The report points out the agricultural sector- particularly rice, rubber and wood - is already competitive within limits of sustainable exploitation.The Asian Free Trade Area (AFTA) is the economic core of the ASEAN group of nations.
In order to join the ASEAN club, Cambodia is expected to liberalize customs duties and make other reforms. The Governments of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Union of Myanmar, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand and the Socialist Republic of Vietnam, Member States of the Association of Southeast Asian Nations (hereinafter referred to as “ASEAN”).
Cambodia faces four major problems in adjusting to the requirement of AFTA: The loss of tariff revenue: Currently, the Cambodian government’s budget is overly dependent on tariff revenues. The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies.
To really benefit from AFTA, Cambodia would have to improve its regional balance of trade, which is currently dismal. Inpercent of Cambodia’s total exports went to Asean countries, while percent of its imports came from within Asean. The Asian Free Trade Area (AFTA) is the economic core of the ASEAN group of nations.
In order to join the ASEAN club, Cambodia is expected to liberalize customs duties and make other reforms.Download