Transcript May, 4 th 2006 2 Workshop on Non-Tariff Measures in

May, 4th 2006
Non-Tariff Measures Faced by Exporters:
Experiences and Findings From Cambodia
Dourng Kakada, Economic Institute of Cambodia (EIC)
May 4th,2006
Krabi, Thailand
Workshop on Non-Tariff Measures in the Asia Pacific
1
Content
May, 4th 2006
Cambodian Export Profile
Major Non-Tariff Measures Faced by
Cambodian Exporters
Case Study
Conclusion
Workshop on Non-Tariff Measures in the Asia Pacific
2
Cambodian Export Profile (1)
May, 4th 2006
1989
1999
2004
2005
Import of
goods
(%GDP)
24.3%
47.7%
61%
65.3%
Export of
goods
(%GDP)
6.4%
35.9%
48.3%
50.7%
Trade
balance
(%GDP)
-17.3%
-11.8%
-12.7%
-14.6%
Source: EIC, Compiled from various government and international organisation primary data
Workshop on Non-Tariff Measures in the Asia Pacific
3
Cambodian Export Profile (2)
May, 4th 2006
Cambodian merchandise exports are limited in terms of
products……….
Profile of Cambodian Export Products in 2004
Agricultural
products
Other
Garment
products
Source: Custom and Excise Department
Workshop on Non-Tariff Measures in the Asia Pacific
4
Cambodian Export Profile (3)
May, 4th 2006
…..And directions of exports
Profile of Cambodian Export Directions in 2004
US
Others
ASEAN
EU
Sources: Custom and Excise Department and Ministry of Commerce
Informal exports still large in agricultural products!
Workshop on Non-Tariff Measures in the Asia Pacific
5
Major NTMs Faced by Cambodian
Exporters
May, 4th 2006
Internal Constraints
Major NTMs
Low standard and SPS
infrastructure
Weak institutional capacity to
respond to new trade regulations
Workshop on Non-Tariff Measures in the Asia Pacific
Standard
Rule of Origin
Conformity Assessment
Sanitary and Phytosanitary
(SPS) Measures
6
May, 4th 2006
Case Study
Workshop on Non-Tariff Measures in the Asia Pacific
7
Garment
May, 4th 2006
Garment products suffer from the EU’s criteria
of rule of origin attached with EBA (Part II:F)
– Lack of textile industry in the country
– Fabrics and accessories mostly imported from China,
Hong Kong, Taiwan and Korea which are not
qualified for the rule
– Buyers’ nominations
EBA utilization rate: 63.3%
Administrative hassles:
– Cost: Official and Unofficial fees
• Unofficial fee for obtaining a certificate of origin
equal to a salary of a garment worker/month
Workshop on Non-Tariff Measures in the Asia Pacific
8
Rubber (1)
May, 4th 2006
Rubber not able to access to broader market
access (Part III:B)
– Cambodia is not a member of International Rubber Association
• Laboratory with qualified personnel and pre-requisite
equipments
• Test participation in compliance with international standards
• Formation of Cambodian Rubber Association
Exported to transit country for further processing
and accreditation
Workshop on Non-Tariff Measures in the Asia Pacific
9
Rubber (2)
May, 4th 2006
Products suffers from price discount
– Rubber export is about 45,000 tons/year
– Rubber price on average by June 2005 (by French
Development Agency):
• Malaysia: US$1,343/ton
• Cambodia: US$1,150/ton (at Vietnamese border)
Workshop on Non-Tariff Measures in the Asia Pacific
10
Rice
May, 4th 2006
Rice exports to China has been banned since end of 2004
(Part IV:B)
– More required documents for risk analysis and assessment
Local rice traders can not compete to buy and stockpile
paddy rice at peak harvest time due to relatively high cost
of capital (Part I:A)
– Leading to informal exports to neighboring countries
Workshop on Non-Tariff Measures in the Asia Pacific
11
Additional requirements imposed by China
before export plants from Cambodia
May, 4th 2006
1.
2.
3.
4.
5.
6.
7.
8.
Information about the plant and/or the product being tested including
general name, scientific name, variety and class.
Information about the producing area of the product indicating the
province, city and area, showing the product location on the national map
with associated acreage.
Information about field management, growing and harvest times.
Information about pests and diseases involved including the general and
scientific names, distribution, plants with parasites, harm-stricken parts of
the plant, harm season, the supervision and inspection system, an impact
statement on economy and biology.
Information of plant protection such as the method and effect of
protection adopted, the description and frequency of chemicals used for
protection.
Risk management measures for harmful plants including import & export
inspection and quarantine law, processes and standards.
Information of the organization system of Inspection and Quarantine
Bureau from central administration to local government, as well as its
responsibility; the institution which is used as the inspection and quarantine
lab is included.
Information of ongoing procedures, organisation relating to the Issuance
of Certificate of Inspection and Quarantine, and a copy of the Certificate.
Workshop on Non-Tariff Measures in the Asia Pacific
12
Fish Products
May, 4th 2006
Fish product exports to the EU have been banned since
1997 by European Commission’s decision 97/296/EC
(Part IV:C)
– Compliance with EC legislation,
– Sanitary conditions in the production of fish products/live shellfish,
– Hygienic conditions in production areas and in product handling, and
controls such as physical inspection,
– Inspection of HACCP systems and laboratory checks carried out by
competent authorities
In 2004 the EU banned imports of tuna and swordfish
since Cambodia failed to respect international
conservation law
Workshop on Non-Tariff Measures in the Asia Pacific
13
Pharmaceutical products
May, 4th 2006
Industry has been noticeably growing in recent years
Currently, one factory is exporting to a number of
countries in Africa
Unable to access broader markets and to join
international bids due to lack of:
– Good Manufacturing Practices (GMP)
– Bio-equivalent study
Workshop on Non-Tariff Measures in the Asia Pacific
14
Other agro-processing products (1)
May, 4th 2006
Confirel products unable yet to access Chinese markets due
to “Certificate of Approved Labels for Foods”
•
•
•
•
•
•
•
•
Certificate of origin
Certificate of free sales
Production process (description and diagram)
Composition of formula
Certificate of registered trade mark
Certificate of free use of trade mark
Certificate of Analysis
Example of labels in Chinese
Workshop on Non-Tariff Measures in the Asia Pacific
15
Other agro-processing products (2)
May, 4th 2006
Black pepper is not accessible to Japanese markets
due to the requirement of a certificate of sterilisation
Workshop on Non-Tariff Measures in the Asia Pacific
16
Other agro-processing products (3)
May, 4th 2006
Protein foods failed to export several times to the US and the EU
due to lack of standard certificates such as ISO, GMP and
HACCP
Workshop on Non-Tariff Measures in the Asia Pacific
17
Conclusion
May, 4th 2006
Cambodian exports severely face NTMs
No systematic records of NTMs in the
country
Careful consideration in FTA negotiation
Workshop on Non-Tariff Measures in the Asia Pacific
18
May, 4th 2006
Thanks for Your Attention!
Workshop on Non-Tariff Measures in the Asia Pacific
19