Factual Presentation

Free Trade AGREEMENT between China and Cambodia
(Goods and Services)

Report by the Secretariat

This report, prepared for the consideration of the Free Trade Agreement between China and Cambodia, has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and does not imply official endorsement or acceptance by the Secretariat of such terminology. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement by the Secretariat regarding the contents of the Agreement.

         Any technical questions arising from this report may be addressed to Mr. Thakur Parajuli (thakur.parajuli@wto.org). Any statistical questions arising from this report may be addressed to Ms. Pamela Bayona (pamela.bayona@wto.org).

Table of Contents

1  TRADE ENVIRONMENT............................................................................... 4

1.1  Merchandise trade...................................................................................... 4

1.2  Trade in services and investment................................................................ 5

2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT................................. 8

2.1  Background information.............................................................................. 8

3  PROVISIONS ON TRADE IN GOODS.......................................................... 9

3.1  Import duties and charges, and quantitative restrictions............................. 9

3.1.1  General provisions................................................................................... 9

3.1.2  Liberalization of trade and tariff lines..................................................... 10

3.1.3  Liberalization schedule........................................................................... 10

3.1.3.1  China................................................................................................. 10

3.1.3.2  Cambodia........................................................................................... 11

3.1.4  Tariff rate quotas (TRQs)....................................................................... 13

3.2  Rules of origin.......................................................................................... 13

3.3  Export duties and charges, and quantitative restrictions............................ 14

3.4  Regulatory provisions on trade in goods.................................................... 14

3.4.1  Standards.............................................................................................. 14

3.4.1.1  Sanitary and phytosanitary measures................................................. 14

3.4.1.2  Technical barriers to trade.................................................................. 15

3.4.2  Safeguard mechanisms.......................................................................... 16

3.4.2.1  Global safeguards............................................................................... 16

3.4.2.2  Bilateral safeguards............................................................................ 16

3.4.2.3  Other safeguard measures.................................................................. 16

3.4.3  Anti-dumping and countervailing measures............................................ 16

3.4.4  Subsidies and State-aid......................................................................... 16

3.4.5  Customs-related procedures and trade facilitation.................................. 16

3.5  Sector-specific provisions on trade in goods.............................................. 17

4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT................... 17

4.1  Scope and definitions................................................................................ 17

4.2  Denial of benefits...................................................................................... 17

4.3  General provisions on trade in services and investment............................. 17

4.3.1  Market access........................................................................................ 17

4.3.2  National and MFN treatment.................................................................. 18

4.3.3  Commercial (local) presence.................................................................. 18

4.3.4  Movement of natural persons................................................................. 18

4.4  Liberalization commitments...................................................................... 19

4.4.1  China.................................................................................................... 19

4.4.1.1  Horizontal commitments..................................................................... 19

4.4.1.2  Sector specific commitments in trade in services................................. 19

4.4.1.3  Cambodia........................................................................................... 22

4.4.1.4  MFN and Horizontal commitments....................................................... 22

4.4.1.5  Sector-specific commitments in trade in services................................. 23

4.5  Regulatory provisions............................................................................... 25

4.5.1  Domestic regulation............................................................................... 25

4.5.2  Recognition........................................................................................... 25

4.5.3  Subsidies............................................................................................... 25

4.5.4  Safeguards............................................................................................ 25

4.5.5  Other.................................................................................................... 25

4.5.5.1  Monopolies and exclusive service suppliers.......................................... 25

4.5.5.2  Investment......................................................................................... 26

4.6  Sector specific provisions on trade in services........................................... 26

5  GENERAL PROVISIONS OF THE AGREEMENT........................................ 26

5.1  Transparency............................................................................................ 26

5.2  Current payments and capital movements................................................ 27

5.3  Exceptions................................................................................................ 27

5.3.1  General exceptions................................................................................ 27

5.3.2  Security exceptions............................................................................... 27

5.3.3  Taxation................................................................................................ 27

5.3.4  Balance-of-payments (BOP) safeguards................................................. 28

5.3.5  Other exceptions................................................................................... 28

5.4  Accession and withdrawal......................................................................... 28

5.5  Institutional framework............................................................................. 28

5.6  Dispute settlement................................................................................... 28

5.7  Relationship with other agreements concluded by the Parties.................... 30

5.8  Government procurement......................................................................... 31

5.9  Intellectual property rights (IPRs)............................................................. 31

5.10  Competition............................................................................................ 31

5.11  Environment........................................................................................... 31

5.12  Labour.................................................................................................... 31

5.13  Electronic commerce............................................................................... 31

5.14  Small and medium-sized enterprises (SMEs)........................................... 32

5.15  Other...................................................................................................... 32

5.15.1  Cooperation under the Belt and Road Initiative (BRI)........................... 32

5.15.2  Economic and technical cooperation..................................................... 32

Annex 1........................................................................................................ 34