The regulation plays a pivotal role in streamlining procedures for verifying origin; enhancing the flow of imports and exports, particularly those benefiting from preferential arrangements; and offering safeguards against counterfeit goods. These criteria help prevent countries from taking advantage of trade agreements, for instance, by transshipping products through intermediary countries to obtain preferential tariffs or other trade benefits.
Cambodia’s move to pass the rules of origin reflects its commitment to aligning with the World Trade Organization’s standards and fostering economic growth. According to an official statement from the Cabinet, the prospective legislation creates a distinct legal framework empowering the relevant authorities responsible for ascertaining the provenance of products, issuing certificates of origin, and facilitating or endorsing the export of Cambodian goods.
The RoO also serves as an essential aspect of the global legal framework that supplements Cambodia’s bilateral, regional, and multilateral free trade agreements. These include the deals with China (the Cambodia-China Free Trade Agreement) and South Korea (the Cambodia-Korea Free Trade Agreement), as well as the Regional Comprehensive Economic Partnership (RCEP).
The law stipulates that guidelines pertaining to country-of-origin labels will be subsequently defined by a collaborative implementing regulation involving the Ministry of Commerce and the Ministry of Economy and Finance. This situation introduces a degree of ambiguity until the formulation of this joint regulation.
Nevertheless, Cambodia’s new law on rules of origin signifies the nation’s determination to adapt to evolving global trade dynamics. By aligning its RoO framework with international standards, Cambodia aims to foster trust, enhance trade relationships, and bolster its own industries’ competitiveness.
In the interconnected world of trade, Cambodia’s actions resonate beyond its borders. The harmonization of rules of origin not only enhances trade partnerships but also sets a precedent for responsible trade practices. As the global trade landscape continues to transform, Cambodia’s proactive approach highlights the importance of staying attuned to the evolving needs of international trade.
About the Author
Sayyid Muhammad Jundullah, often goes by Jundi, is a writer at AYO Post. He is an enthusiastic and value-driven full-time learner with strong passion in human rights and development. Growing up as a map geek, he has a dream to explore the world he’s living in. He loves to write and think, and enjoys the company of good friends in his leisure time.