Mango Licking Good! Cambodia, Russia to Increase Bilateral Trade, Looking at FTA
By Chris Devonshire-Ellis, Dezan Shira & Associates
Cambodian Deputy Prime Minister Hor Namhong met with Russian Ambassador to Cambodia Dmitry Tsvetkov in Phnom Penh on Monday and said both countries had good diplomatic relations which continued to be strengthened by Russian contributions to the Kingdom’s economic growth.Cambodia and Russia have pledged to increase bilateral trade and investment as the Kingdom aims to diversify its market through the signing of a free trade agreement (FTA) with the Eurasian Economic Union (EAEU), of which Russia is a member, together with Armenia, Belarus, Kazakhstan and Kyrgyzstan. It has a total market of 183 million people and a GDP of US$5 trillion.
In ASEAN, Singapore and Vietnam also have an FTA with the EAEU, while Indonesia, Malaysia and Thailand are also known to be interested.
Namhong said: “Our countries share a good relationship and we cooperate well in many sectors. Since 2015, our countries have signed 51 agreements to boost trade and investments in the financial sector, agriculture and more. Last year, bilateral trade reached US$55.39 million and we hope it will continue to grow this year. Cambodia welcomed some 55,653 Russian tourists last year and hopes to welcome an increasing number in the future. Presently, we are in talks over 14 Memorandums of Understanding (MoU) which we expect to be signed soon. These will focus on tourism, education, law, and youth development.” he said.
He also expressed hope that Russia will support Cambodia in its free trade negotiations with the Eurasian Economic Union.
In return, Dmitry Tsvetkov noted Cambodia’s fast development and said he was impressed by the fact that even though Cambodia was not an oil-producing country, it had seen approximately seven percent growth last year.
He said a Cambodia-Russia Working Group had started negotiations on a free trade agreement with Eurasia, while he noted Cambodian officials visited Moscow last year to discuss the EAEU FTA.
In 2016, Cambodia and the EAEU signed an MoU to enhance cooperation in trade. However, as Cambodia is still in the WTO Least Development Country (LDC) classification, 46 Cambodian products can enter the EAEU market duty-free within the next three years.
Businesses in the region are hoping that Cambodia can secure further trade agreements, with agricultural conglomerate MongRiththy Group planning to expand markets for mango exports in Russia and Hungary.
MongRetthy Group president, Mong Riththy said his company plans to export around 5,000 tons of mangoes a year to Russia.
ASEAN Briefing is written by Dezan Shira & Associates. The firm provides market research and professional services to foreign companies throughout ASEAN and also has offices in Russia. For information concerning our services in ASEAN and Russia please email us at email@example.com or visit us at www.dezshira.com