The General situation of trade between the two countries does not meet with satisfaction. The value of trade value has been small and, additionally, Lao-Cambodia’s only trade agreement was signed in 1998 to reflect cooperation on trade but it has not yet been implemented very efficiently. Therefore, there should be scope for an extension of cooperation and both sides totally agreed to establish the Joint Trade Cooperation agreement between Laos and Cambodia. The objective of the agreement is to promote the expansion of trade and eliminate trade impediments between the two countries, especially border trade. The Proceedings of the Joint Trade Committee shall fall under responsibility of the respective Ministry of Commerce of the Kingdom of Cambodia and Ministry of Industry and Commerce of Lao People’s Democratic Republic. They shall hold consultations and exchange information on trade, review the development of trade as well as identify areas of mutual interest in trade for further cooperation, recommend to the respective Governments measures aimed at expansion and diversification of trade between the two countries, collaboratively resolve existing trade obstacles between the two countries as well as explore other feasible approaches to attain the trade volume targets, set up working groups to carry out activities under their purview and encourage interacting cooperation between both private sectors along the border.
Both Lao PDR and Cambodia signed the Memorandum of Understanding on the Establishment of the Cambodia-Laos joint trade committee on 19 April 2013, the Lao delegation was led by H.E. Dr. Nam Viyaketh, Minister of Industry and Commerce and the Cambodia delegation was led by H.E. Mr. Cham Prasdh, Senior Minister, Minister of Commerce.
Both countries provided guidance on implementation by specifying the priority sectors for enhanced cooperation, deciding together how to improve bilateral trade agreement between Cambodia and Lao PDR, considering the development of an agreement on Transit Goods between Cambodia and Lao PDR, promoting trade of agricultural product, cooperation on border trade, developing border trade market, attending trade exhibitions, trade facilitation, investment and cooperation on tourism, and cooperation on a trade sector wide approach.
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