Cambodia nudged a step closer to getting highly-valued Most-Favored-Nation trade
status with the United States, both countries said in a statement following two
days of trade talks.
"We made progress towards our common goal of
reaching a bilateral trade agreement between the US and the Kingdom of
Cambodia," a joint US-Cambodian statement dated Feb 11 said at the end of two
days of trade talks.
"This agreement would include the reciprocal
extension of Most-Favored Nation tariff treatment and other measures to
facilitate enhanced trade between our two countries, such as protection of
intellectual property rights," it added.
Further discussions are
scheduled. The Royal Government is actively seeking foreign capital to help
rebuild the country's shattered economy.
But finance Minister Sam Rainsy
told a news conference that official corruption and a violent crime wave were as
big a deterrent to foreign investment as the on-going guerrilla war against the
communist KR.
Rainsy's sweeping economic reforms include a balanced
budget, modest import duties and an enforceable tax on company profits. Under
the former Vietnamese-installed government there was no centralized tax
collection.
"Tax is just a factor - not so important. Problems of peace
and stability, security, corruption, a legal system and infrastructure are the
real hindrances for investment in the country," he said.
Rainsy said he
expected little effect on Cambodia from the lifting of the US trade embargo on
neighboring Vietnam.
