PHNOM PENH: The President of the Japan-Cambodia Association and former Japanese Ambassador to Cambodia, Takahashi Fumiaki, promised to take up Cambodia's proposal to establish a free trade agreement between Cambodia and Japan, and submit a proposal to the Government of Japan for consideration of expanding trade and investment from Japan to Cambodia.

The desire for free trade between Cambodia and Japan was stated by the Minister of Commerce, Pan Sosak, during a working meeting with the Japan-Cambodia Association President on Thursday. The talks were aimed at strengthening cooperation between the two countries and promoting a better business environment.

During the meeting, Minister Pan Sosak highlighted some instances of past cooperation that has improved trade and investment between Cambodia and Japan. The Minister emphasized that with this strategic partnership and cooperation, Japan has made significant contributions to Cambodia's economic development through the rehabilitation of infrastructure, the provision of human resource development programs, and the strengthening of economic relations in the field of tourism, trade and investment in many other sectors.

The Minister of Commerce added that Japanese investors have come to Cambodia and brought the flow of technology, knowledge and skills through Foreign Direct Investments (FDI) and Official Development Assistance (ODA). He further mentioned how the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) has accelerated the response to economic development between Cambodia and Japan through the provision of free trade, services and investment.

Some of the results highlighted by Minster Pan Sosak during the meeting included the exports of Cambodian products to Japan reaching about $1.5 billion dollars in August 2021, according to the General Department of Customs and Excise, and also underlined export potentials such as garments and furniture, as well as footwear, textiles and other consumer goods. The Minister also added that Cambodia imports 400 to 500 tons of raw silk from Japan per year to produce handicraft products for export to major markets, including Thailand, Vietnam, China and Japan. He continued that the Japanese market will become Cambodia's largest import market for silk products by 2020, amounting to $1.5 million dollars.

The Minister called on Japanese businessmen, entrepreneurs and investors to consider Cambodia as a business partner and investment destination as the Royal Government of Cambodia has ensured stability, peace and politics, as well as a favorable investment and business environment for Japanese investors.

In response, the President of the Cambodian-Japanese Association expressed his appreciation for the Royal Government of Cambodia's efforts to ensure peace and social stability, especially the success of the national Covid-19 vaccination campaign. In addition to promising to submit a free trade proposal to the Government of Japan, he also expressed support for the development of Japanese investment in silk value chains in target provinces, as well as a continued commitment to have Japanese investors support development in Cambodia.

Minister Pan Sosak noted that this working meeting acts as a step towards building a roadmap for future cooperation between Cambodia and Japan, and will be a target indicator for the Ministry of Commerce and the Cambodia-Japan Association to achieve the goal of boosting the production and export of small and medium enterprises and producers when a bilateral free trade agreement is established between the two countries.