WORLD TRADE WT/MIN(96)/ST/95
11December 1996
ORGANIZATION(96-5261)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
CAMBODIA
Statement byH.E. Mr.Cham Prasidh
Minister ofCommerce
Itisformeagreat honour tohavebeenaccorded theprivilege ofaddressing thisimportant
Ministerial Meeting. Itis,forCambodians, anhistoric occasion, sinceitisthefirsttimethatCambodia
hasaddressed ameeting oftheWorld Trade Organization. Ourappearance heretoday marks another
small butimportant stepintheprocess ofthereintegration ofCambodia intotheworld family ofnations.
Thatprocess, asyouallknow, began almost exactly fiveyears ago,withthesigning ofthe
Paris Accords. TheUNsponsored peace-keeping mission andelections initiated anongoing process
ofnational reconciliation among allbutoneoftheformerly warring parties. TheUNsponsored elections
resulted intheformation ofagovernment ledbyprime ministers fromthetwopolitical parties receiving
themostvotes, withacabinet drawn fromallpolitical parties thatdemonstrated through theelections
thattheyenjoy substantial popular support. Moreover, inthepastseveral months significant progress
hasbeenmade inbringing about defections fromtheKhmers Rouges outlaws andinintegrating them
intothenational community.
Political reconciliation among Cambodians hasbeenaccompanied byrapid economic reform -
reform designed tobring about asquickly aspossible amodern market economy. Thecomplete
liberalization ofprices andmarkets isnowcompleted; most state-owned enterprises have been
restructured andprivatized, andtheprocess ofprivatization iscontinuing; macroeconomic stability
hasbeenachieved andsustained; theinstitutional andlegalframework required foramarket economy
isbeing putinplace, withtheobjective ofcreating asound, predictable andtransparent environment
forbusiness activity, andanattractive framework fordomestic andforeign investment.
These reforms havebeenaccompanied byrapid growth, withGDPrising atanaverage annual
rateof6percentsince 1991. Weanticipate thatgrowth in1996 willalsoreach 6percent, andthat
itwillaccelerate somewhat in1997. Thisgoodperformance is,ofcourse, directly related tothereforms
mentioned above. Butisalsoowes much totheinternational donor community, whose generous
assistance hasbeen particularly valuable intheongoing process ofrehabilitating andupgrading
Cambodia 'seconomic andsocial infrastructure.
TheCambodian authorities fullyunderstand thatthebesthopeforspeedy economic development
inCambodia liesinitsrapid integration intothedynamic regional economy ofSouth-East Asia, and
intotheworld economy atlarge. Weareconfident thatsuchintegration willallow theCambodian
economy todraw maximum benefit from therapid economic growth taking place inneighbouring
countries, andfrom trade andinvestment flows withtherestoftheworld. Weare,ofcourse, also
mindful oftheenormous challenge thatsuccessful integration represents forCambodia, whose limited
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economic capacities havecaused ittobeclassified bytheUnited Nations asaleastdeveloped country.
Wearenonetheless determined tomeetinfullthischallenge.
Cambodia hasalready taken, unilaterally, asignificant number ofpolicy measures designed
toopen theCambodian economy tointernational trade andinvestment. Forexample, quantitative
restrictions onimports havebeeneliminated, import tariff levels substantially reduced, andthetariff
structure simplified; external payments havebeenliberalized, andtherearenowdefactonorestrictions
oncurrent account payments; amarket-oriented exchange ratepolicy isbeing followed; andforeign
direct investment hasbeenwelcomed andencouraged through generous incentives.
Cambodia hasalsomoved forward rapidly toputinplace bilateral arrangements designed to
normalize itstradeandinvestment relations withother countries. Forexample, Cambodia hasrecently
obtained MFN status withtheUnited States, andnowhasGSPstatus with26other developed countries.
Cambodia hasalsosigned bilateral investment treaties withanumber ofcountries. Andwewillcontinue
toadvance ourtrade andinvestment relations onabilateral basis.
Cambodia fullyrealizes, however, thatthisisnotenough. Integration intotheregional and
world economies requires membership intheorganizations setting andadministering therulesgoverning
trade inourregion andintheworld atlarge: namely ASEAN andWTO.
Cambodia hasbeenactively engaged indiscussions onmembership withASEAN member
countries. Webelieve thatthose discussions haveadvanced toastage atwhich apolitical decision
onCambodia 'saccession canbereached, andthatCambodia willbecome amember ofASEAN in1997.
Cambodia announced some timeagoitsintention toseekmembership intheWTO, butthe
priority accorded totrade diplomacy atthebilateral andregional levels hasprecluded rapid progress.
Now, however, weareinaposition toturnourfullattention toWTO accession. Weareconfident
thatin1997 wewillbeabletomake significant progress toward completing thisprocess. Ourgoal
isnothing lessthantoensure that,atthenextMinisterial Meeting oftheWTO, theMinister of
Commerce ofCambodia willaddress thatbody astherepresentative ofaMember State.