By CHHIENG Pich,Director, DICO

National Project Director, TDSPDirector, EIF-NIU

DPs Pledging Roundtable MeetingMoC, 31 Mar 2016

1. Background

2. MTP main objective

3. MTP methodology

4. MTP formulation

Cambodia carried out acountry diagnostic tradeintegration study (DTIS)in 2001

First update of DTIS in Dec 2007.

Second update of DTIS on 18 Feb 2014.

The 3rd Cambodia’s DTIS 2014-2018 was officially launched and presided over by Samdech Prime Minister HUN SEN, Peace Palace, 18 Feb 2014

The purpose of the Medium Term Plan is to take stock of the progress

of implementation of Cambodia’s Trade SWAp Roadmap 2014-2018,

review areas already receiving technical support, and identify and

prioritize areas where additional technical assistance is necessary for

advancing the implementation of the Roadmap in the next five years

(2016-2020)

• First, assessing Cambodia’s progress in implementing the outcomes and specific indicative actions outlined in the Trade SWAp Roadmap 2014-2018.

• Second, prioritizing clusters of activities for furthering the implementation of the Trade SWAp Roadmap (ten priority cluster identified for future technical assistance by the technical team and prioritized them for purposes of immediate resource mobilization.

• Third formulating cluster concept notes for the top five clusters to allow DICO and relevant stakeholders to engage with partners on program formulation and resource mobilization.

• Fourth, completing five additional concept notes to cover the remaining five clusters following completion.

Trade SWAp Five Development

Goals

• Twenty Strategic Outcomes

• And 130 indicative actions

# of Actions % of TotalStatus of Work

No Work 56 42%Work under way 74 55%Completed 4 3%Total 130 100%

Status of TANot needed 31 23%Ongoing 62 46%TA needed 41 31%Total 130 100%

1. Trade Policy, Sector Policy, Legal and Regulatory Reform: Formulate Trade Policy in view of AEC, RCEP, TPP and erosion of preferences including RoOs; develop sector policies (e.g. cassava, fish, rubber, others); identify sector-specific NTMs; implement the Government’s 2012-2015 Work Program on Legal Reform, including key reforms identified in the Trade SWAp Road Map 2014-2018.

2. Trade Facilitation and Transport Logistics: Establish the NSW including automation of trade related documents; respond to the Bali Agreement on Trade Facilitation; develop, adopt, implement a national transportation logistics plan; improve cross-border transit agreements; improve and enforce road transport regulations; encourage modernization of road transport fleet.

3. SPS and Other Quality Systems for Trade: Complete key legal reforms in SPS; develop capacity of key agencies not only in Phnom Penh but in field offices as well especially in areas of surveillance and inspections; promote a culture of SPS including through encouraging agro exporters to adopt SPS standards required by importing markets, develop various quality systems to support export sectors (e.g. rubber, silk.)

4. Private Sector Structuring: Strengthen sector associations and private sector in rice, cassava, fisheries, rubber, and hospitality including ability of sectors to articulate positions and engage government through G-PSF or other venues; strengthen and promote branding through sector-specific collective marks, GIs, Quality Seals, other means as well as through “Made in Cambodia” branding; strengthen export promotion capacity including through capacity building in sector associations.

5. Development of Inclusive Value Chains: Build capacity of priority export sectors identified by Government in the Trade SWAp Road Map 2014, including in light manufacturing, agro-processing, rubber and tourism.

6. Trade Mainstreaming and Management of Aid for Trade: Continue to build capacity for monitoring and communicating Trade SWAp as a program instead of a collection of projects; continue to mobilize and coordinate AFT support; strengthen capacity of MoC and other line ministries to participate in SWAp; improve fiduciary management of AFT projects using different disbursement modalities. Deepen trade build trade-related training and research capacity in Government;

7. Skills for Exports: Address the lack of skilled technical personnel as a result of the absence of a robust TVET structure is a serious bottleneck in Cambodia’s ability to move up value chains; address the lack of well-trained engineers (mechanical, structural, agricultural, chemical, biologist, etc.); strengthen collective bargaining environment and dispute resolution mechanisms.

8. Investment Environment, Integration in Regional Value Chains, Backward Linkages: Complete supportive legal framework including encouraging development/deepening of backward linkages in garment, bicycles, footwear, hospitality (horticulture); diversify investment in regional and global value chains beyond garment, footwear and bicycles; develop investment promotion capacity including at provincial level.

9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services: Develop structured value chains between farmers and semi-agro-processors or agro-processors through farmers groups, cooperatives, contract farming arrangements, etc; strengthen quality of seeds, seedling, and other plantings;

10.Access to Finance: Address the lack of access to working capital and trade finance especially for SMEs and other small producers/exporters as it is a significant constraint to export development.

Cluster 1: Trade policy, sector policy and legal and regulatory reform

Cluster strategic objectives Trade SWAp Roadmap Outcomes1. Complete trade-related key legal and

regulatory reformsOutcome 1: Trade policy, legal reform and trade negotiations

2. Strengthening implementation of trade-related laws and regulations through strengthening of implementation and enforcement capacity of relevant line ministries and agencies

Outcome 6: Establishing a trade-supportive framework for intellectualproperty rights

3. Formulate a trade policy 2015-2025 to guide Cambodian negotiators

Outcome 1: Trade policy, legal reform and trade negotiations

4. Develop sector policies based on value chain analytical work

Outcome 18: Mainstreaming trade

Start-up projects (Low-hanging fruits)1) Accelerate implementation of the work program on legal reform 2012-20152) Analyze non-tariff measures included in the National Trade Repository3) Strengthen enforcement of geographical indications4) Formulate a trade policyEstimated resource needs (2016-2020) USD 4-5 million

Cluster 2: Trade facilitation and Transport logistics

Cluster strategic objectives Trade SWAp Roadmap Outcomes

1. Implement Cambodia National Single Window (NSW)

Outcome 2: Trade facilitation

2. Formulate and Implement National Trade Logistics Plan

Outcome 3: Trade logistics

3. Implement ATIGA and the WTO Trade Facilitation Agreement (“Bali Package”)

Outcome 2: Trade facilitationOutcome 1: Trade policy, legal reform and trade negotiations

Start-up projects

1) Review Arrangements among Cambodian Border Agencies and with Vietnamese and Thai Counterparts Agencies to Create Shared Border Point Offices/Facilities at Key Crossings

2) Assessment of Other Trade-Facilitation-related Documents not yet Computerized3) Support Initial Work on National Trade Logistics Plan

4) Institutional Arrangements and Assistance Modalities for TFA Implementation in CambodiaEstimated resource needs (2016-2020) USD 5 million

Cluster 3: SPS and other Quality Systems for Trade

Cluster strategic objectives Trade SWAp Roadmap Outcomes

1. Establish a coherent WTO- and ASEAN-compatible legal and regulatory framework for SPS and other quality systems

Outcome 4: Strengthened capacity of exporters to meettechnical standards and SPS requirements.

2. Enhance systems and structures to develop adoption of SPS standards and practices throughout the entire food value chain from “farm-to-fork”, including strengthening SPS practices at farm, producer, and retailer levels

Outcome 4: Strengthened capacity of exporters to meettechnical standards and SPS requirements.

3. Achieve international accreditation of Cambodian laboratories for relevant parameters

Outcome 4: Strengthened capacity of exporters to meettechnical standards and SPS requirements.Outcome 17: Bridging the skill gap for exports.

Start-up projects

1. Amend and adopt a WTO-compliant Law on Standards2. Complete drafting of Food law and assemble group of experts to eliminate contradictions and lack of coherence in current

SPS framework.3. Adopt 250 or ASEAN harmonized standards not yet adopted by CambodiaEstimated resource needs (2016-2020) USD 5-7 million

Cluster 4: Private Sector structuringCluster strategic objectives Trade SWAp Roadmap Outcomes

1. Private sector Associations are able to articulate positions and dialogue with Government through the G-PSF or other venues

Outcome 10: Processed food.Outcome 12: Milled rice.Outcome 13: Cassava.Outcome 14: Rubber.Outcome 16: High value silk.

2. The private sector and Government develop PPP arrangements to narrow the labor skill gap, invest in common facilities, or support other investment in “public goods”

Outcome 7: Garments.Outcome 9A: SEZ.Outcome 15: Tourism.

3. The private sector increases capacity in marketing, promotion and branding for exports

Outcome 7: Garments.Outcome 8: Footwear.Outcome 10: Processed food.Outcome 12: Milled rice.

4. The private sector is able to meet international SPS and other quality standards

Outcome 4: Strengthened capacity of exporters tomeet technical standards and SPS requirements.Outcome 7: Garments.Outcome 14: Rubber.Outcome 17: Skill gap

Start-up projects1. Develop culture of professions in Tourism2. Develop/strengthen collective branding in High-value fragrant rice, garments, and high-value silk.Estimated resource needs (2016-2020) USD 5-6 million

Cluster 5: Development of inclusive export value chains

Cluster strategic objectives Trade SWAp Roadmap Outcomes

1. Develop export capacity in priority sectors identified by the Government, beginning with the priority sectors identified in CTIS 2014-2018 and the 2015 Industrial Development Policy

Outcome 9B: Light manufacturing assembly.Outcome 10: Processed food.Outcome 12: Milled rice.Outcome 13: Cassava.Outcome 16: High value silk products

2. Develop a business and investment environment supportive of the development of Inclusive Value Chains including through deepening backward linkages

Outcome 5: Investment environment for exports.Outcome 9A: SEZ.

Start-up projects

1. Prepare Draft Project Document(s) for Submission to EIF or Other Interested Development Partners.

2. Support Implementation of Laws on Investment and SEZ once adopted.

3. Develop Relevant Investment Promotion Tools to Attract New Investment in Key Priority Export Value Chains

Estimated resource needs (2016-2020) USD 5-7 million

No. Description Estimated budget

Cluster 1 Trade policy, sector policy and legal and regulatory reform USD 4-5 million

Cluster 2 Trade facilitation and Transport logistics USD 5 million

Cluster 3 SPS and other Quality Systems for Trade USD 5-7 million

Cluster 4 Private Sector structuring USD 5-6 million

Cluster 5 Development of inclusive export value chains USD 5-7 million

TOTAL USD 24-30 million

Cluster DPs Line Ministries

1 Trade Policy, Sector Policy, Legal and Regulatory Reform EU, GIZ MoC

2 Trade Facilitation and Transport Logistics EU, WB, USAid WB/GDCE

3 SPS and Other Quality Systems for Trade EU, UNIDO MAFF/MoC

4 Private Sector Structuring ADB MIH/MoC

5 Development of Inclusive Value Chains EU, ESCAP, IFAD, CBI MoC/MAFF

6 Trade Mainstreaming and Management of Aid for Trade EIF, EU MoC

7 Skills for Exports SIDA, AFD, CBI MOLVT/MOC

8 Investment Environment, Integration in Regional Value Chains, Backward Linkages

JICA, EU, GIZ CDC

9 Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services

IFAD MAFF

10 Access to Finance ADB MEF

Timetable for SSC-TD-TRI Meeting in 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SSC Thu 25

SSC Mon 30

SSC Wed 31

SSC Tue 29

Timetable for IC Meeting in 2016

ICMon 11

IC Thu 11

IC Tue 15

IC Thu 21

IC Wed 11

IC Tue 14

IC Tue 12

IC Thu 11

IC Tue 13

IC Wed 12

IC Thu 10

IC Tue 13

Timetable for DICO and IAs Meeting in 2016

Mod 07 Tue 05 Wed 04

Timetable for D/ICO and Line Ministries Meeting in 2016 (Under EIF)

Wed 06 Tue 10 Mon 05 Thu 08

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អសយដ� ន: ឡតេលខ ១៩-៦១ វថរកសងពណជ�កម�

(១១៣េប), ភមទកថា� , សង� តទកថា� , ខណ� ែសនសខ,

រជធានភ�េពញ ១២១០២

ទរសព�/ទរសរៈ ០២៣-៨៦៦-០៧៤

Email: chhiengpich@gmail.com

www.moc.gov.kh | www.moc.gov.kh/tradeswap

Ministry of CommerceDepartment of International Cooperation

Lot 19-61, MoC Road (113B)Phum Teuk Thla, Sangkat Teuk ThlaKhan Sen Sok, Phnom Penh 12102

Cambodia

Tel/Fax: 023-866-074

Email: chhiengpich@gmail.com

www.moc.gov.kh | www.moc.gov.kh/tradeswap