‘Canada remains a very important market for Cambodia’

KT: What is the state of trade between Canada and Cambodia?

Jan Scazighino: The bilateral commercial relationship is the fastest growing in the region. Canada is one of Cambodia’s top export destinations and bilateral merchandise trade has grown consistently. The 2020 Canadian merchandise exports to Cambodia were valued at $31.4 million and 2020 Canadian merchandise imports from Cambodia were valued at $1.5 billion. The 2020 Canadian direct investment into Cambodia stood at $1.02 billion. This means that Canada remains a very important market for Cambodia.

KT: Did the COVID-19 pandemic affect trade ties between the two countries?

Jan Scazighino: Visitors from Canada slowed to a trickle. But this was true for many countries. We hope that 2022 will see the return of both Canadian tourists and business people, and Canada recognises the tremendously successful vaccination and COVID management organised by the Cambodian government. Canada just contributed over $2 million in COVID PPE to Cambodia. This is on top of its over $400 million contribution to COVAX as a whole, and a part of that also reaches the Kingdom.

KT: What’s the potential for trade between two countries?

Jan Scazighino: Three factors bode very well for our trade ties: The end of COVID restrictions; the eventual FTA with ASEAN —  where it is estimated that Cambodia could benefit to its GDP by over $500 million/year; and longstanding goodwill between our two countries. This office sees particular areas of potential in sectors like cleantech, aerospace, education and finance.

KT: What steps the Canadian representation is initiating to improve trade ties? 

Jan Scazighino: Our office in Phnom Penh is small, yet mighty! We divide our approach into pro-active and reactive. On the pro-active side, we attack the “priority sectors” identified above and create or attend industry events to promote business to business ties. For example, in February 2022, we will attend the Singapore Airshow and try to recruit potential Cambodian buyers to come with us. Then, at the show, we will make the introductions between the Cambodian and Canadian sides. Pro-actively in these sectors, we also reach out to potential Khmer partners, across the beautiful Kingdom, all year long. On the reactive side we provide them with core services: finding them local Khmer business partners, and describing the market for them to make more educated business decisions.

KT: Canadian businesses like the National Bank of Canada (ABA Bank) are represented in Cambodia. Today how many Canadian companies operate here, and can we see more investment in the near future?

Jan Scazighino: Canada has invested over $1 billion in the Kingdom. Canadian companies in Cambodia includes Manulife, the first life insurer to receive a licence to operate in the Kingdom; National Bank of Canada which acquired 100 percent share of the ABA Bank and now has become one of the top three commercial banks of Cambodia. The other Canadian businesses in Cambodia include Angkor Resources, Learning Jungle School, Duraflex Solutions (Asia), Bell Helicopter and start-ups like Demine Robotics and Monkiri.

KT: Are there any roadblocks in the trade ties between Canada and Cambodia?

Jan Scazighino: The main obstacles are COVID, distance and regional competition. COVID has forced many businesses to become more conservative in their new market prospecting. Second, if you are a Canadian business, it’s easiest to export to the US. And third, should Canadian business come to this part of the world, it is sometimes difficult to differentiate the tremendous advantages of the beautiful Kingdom of Cambodia from the other ASEAN juggernauts such as Singapore, Thailand and Philippines.

KT: What are the products that Canada imports from Cambodia?

Jan Scazighino: Currently, key products sold from Canada are mink fur skins, industrial machinery and vehicles. Top Canadian imports included apparel, footwear and textiles. Cambodia currently benefits from Canada’s unilateral preferential tariff program extended to least developed countries, the LDCT, which provides duty-free, quota-free access for most products. In addition, I also see potential in international education. As a result, we organise pro-active activities in these sectors. For example, our office has recently performed outreach to dozens of Cambodian educational institutions to encourage Cambodian students to study in Canada. We also promote school-to-school partnerships.

KT: Last month, Canada and ASEAN formally agreed to proceed with FTA negotiations. Tell us something on the impact it will have on Canada’s trade ties with Cambodia?

Jan Scazighino: Canada deeply values its privileged and growing relationship with all ASEAN member states and the Canada-ASEAN Free Trade Agreement is a priority for the Government of Canada. The Government is committed to applying the amended Policy on Tabling of Treaties in Parliament to all new comprehensive FTAs, including a Canada-ASEAN FTA. In line with this policy, on November 24 the government tabled a Notice of Intent to enter into negotiations toward a Canada-ASEAN FTA.

KT: Tourism is another area where the two countries can work together. Your take on it?

Jan Scazighino: Before COVID we were up to about 70,000 Canadians visiting Cambodia each year. That is impressive, and I would love to see them return. Through two-way tourism we can grow to know each other even better. It’s a proven fact that more business usually follows increased tourism numbers.

KT: Canada closed its embassy in Cambodia in 2009 due to ‘changing international priorities’. Is there a chance of a Canadian Embassy returning to the Kingdom?

Jan Scazighino: Canada opened an Office of the Embassy of Canada in Phnom Penh in August 2015, with a Chargé d ’Affaires responsible for the full range of bilateral relations except immigration. The Canadian Embassy in Bangkok and our Ambassador there remain accredited to Cambodia, and the Chargé reports to that Ambassador. While there are no current plans to increase our office size or graduate to a full embassy, Canada takes ASEAN seriously and wants to do more. Cambodia is the ASEAN Summit Chair for 2022, which offers Canada and Cambodia further opportunity to expand ties.

KT: The Canadian Chamber of Commerce in Cambodia (CanCham) used to be one of the most active foreign business organisations in the Kingdom remains inactive for now due to various reasons. Any plans for its revival?

Jan Scazighino: CanCham operates independently from the Office of the Embassy of Canada. They run their own show and I agree that I’ve have not seen much activity over the past year. Then again: not many business events happened in the past year in general. I have been a trade commissioner for Canada for 27 years and have a lot of experience working in partnership with various Canadian and foreign chambers of commerce. 2022 should offer ample opportunities to consider areas of partnership with them.

KT: How do you see the Cambodia-Canada trade ties in the near future? In the long term?

Jan Scazighino: It would be a great step forward to graduating to FTA negotiations between Canada and ASEAN and hopefully move towards early completion of this agreement. Long term, our Canadian FTA’s recently do not just include drops in tariffs. They are much more. They include cooperation on labour issues, environmental issues, women in business, intellectual property, IT, security and more. With the successful implementation of the Canada-ASEAN FTA, it is a tool that provides a framework for cooperation that benefits both countries. 

KT: Do you see Canadian PM Justin Trudeau visiting Cambodia or Prime Minister Hun Sen visiting Canada in the near future?

Jan Scazighino: There are currently no such plans. However, I see a possibility developing. As I noted above, Cambodia chairs the ASEAN Summit in 2022. As the Chair, it is within the authority of Cambodia to invite Dialogue Partners to attend the ASEAN Leaders Summit next Fall, 2022. Canada welcomes such an invitation and regards it as a great honour.

Source: KhmerTimes