Monday, 03 September 2012
May Kunmakara and Gregory Pellechi
Phnom Penh Post
The
United States and Cambodia have agreed to begin discussions on a
bilateral investment treaty (BIT) in a bid to spur trade and investment
between the two countries, officials said on Friday following the end of
the ASEAN-US Business Summit in Siem Reap.
“A bilateral
investment treaty between the United States and Cambodia would encourage
investment by improving investment climates, promoting market-based
economic reforms, and strengthening the rule of law,” said United States
Trade Representative Ron Kirk . “Our decision to explore this
possibility highlights progress made by Cambodia in fostering a policy
environment that treats private investment in an open, transparent, and
non-discriminatory way.”
Preliminary conversations between the US
and Cambodia will be used to established similarities with further
discussions highlighting possible approaches for the treaty, according
to US Embassy Spokesman Sean McIntosh.
“Initially, the United
States and Cambodia will discuss our respective investment policies
broadly to determine key similarities and differences. Subsequent
discussions would involve experts meeting to share approaches and have
further talks based on the US model text,” he said in an email.
Cham
Prasidh during the summit acknowledged that the United States is
Cambodia’s main trading partner, saying that the Kingdom would
unequivocally be seeking more investment and trade with the US.
“Now
is the right time for us to have this type of encounter,” he said “The
US plays a very important role for ASEAN as one of its largest trading
partners. We’re also one of their largest trade partners.”
The treaty would offer Cambodia “protections to Cambodian investors in the US market.
Additionally,
as Ambassador Kirk noted, it would highlight and advance Cambodia's
progress in improving its investment climate”, according to McIntosh,
while providing specific investment details for both countries that a
free trade agreement would only cover in a broader sense.
To contact the reporters on this story: May Kunmakara at kunmakara.may@phnompenhpost.com
Gregory Pellechi at gregory.pellechi@phnompenhpost.com
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