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It is in China that it decided to surrender the head of the Cambodian government for his first official visit of 2019. Increase of import quotas of Cambodian rice, strengthening bilateral economic relations or Chinese aid to Cambodia ... Beijing and Phnom Penh show their willingness to continue their rapprochement. These announcements come as for several months, relations with the European Union are under tension.
From our correspondent in Phnom Penh,
For Cambodian government officials, Prime Minister Hun Sen's visit demonstrates that the relationship between Cambodia and China is stronger than ever. A proximity that is not new, but which is gaining importance, while relations with Brussels are complicated.
Among the announcements made earlier this week, Beijing plans for example to increase the quota of imported Cambodian rice to 400,000 tons per year. The proposal is not innocuous, whereas the European Commission has just reintroduced taxes on Cambodian rice for three years.
Since 2012 in Europe, Cambodian rice has been exempt from customs duties under the "everything but weapons" agreements. Reintroducing these taxes now aims to respond to the increase in competition denounced by European farmers, particularly in Spain or Italy.
However, Cambodian agriculture continues to rely primarily on rice cultivation and the European Union is the largest importer. The reintroduction of these taxes, which also concern Burma and came into force on Friday, January 18, 2019, was therefore coldly received in Phnom Penh.
The "everything but weapons" principle questioned in Cambodia
Kim Hourn, Minister Delegate to the Cambodian Prime Minister, told reporters Wednesday that the opening of the Chinese market sends a strong message, which satisfies Phnom Penh, while Brussels calls for speeding up a procedure that could lead to a suspension of agreements. and the reintroduction of taxes on all Cambodian goods.
The procedure for suspending preferential agreements has been launched, but it is officially under consideration. On the other hand, the concern of local economic actors seems to increase as the months go by. The "everything but arms" free of taxes goods exported by some developing countries to the EU. All except weapons. This agreement, conditional on respect for human rights or labor, is being questioned in Cambodia.
The proceedings initiated by the Commission stem inter alia from the climate of repression in which the last legislative election took place in the country. After the dissolution of the main opposition party, in November 2017, the July ballot granted all seats in the Parliament to the Prime Minister's party, whose mandate was renewed.
On Monday, economic actors sent a letter to EU Trade Commissioner Cecilia Malmström. They ask Brussels not to suspend the agreement and are worried about the long-term consequences for trade and relations between Cambodia and the European Union.
Beijing and Phnom Penh are increasingly supporting themselves on the world stage
While the EU remains today the main market for the export of Cambodian products, China is the first investor in the country, and the largest provider of aid. Beijing should remain so, since 500 million euros of aid were promised by 2021 during the visit of Hun Sen.
Cambodia and China continue to strengthen their economic ties, but also their partnerships in security or regional policy. In Beijing, the discussions also focused on the various projects led by China to Cambodia and their integration into the new Silk Road. A project both economic and political.
Beijing and Phnom Penh are supporting themselves more and more frequently on the international scene. Cambodia is China's first ally on the South China Sea, which pits it against several countries in Southeast Asia. In Beijing, Cambodia has also reiterated its support for the doctrine of "single China" and the incorporation of Taiwan.
While joint military exercises were abandoned with the United States last year, in 2019, several should be held with China. In the country, the presence of the Chinese and the multiplication of investments are anchored more and more in the debates of society. The number of Chinese officially residing in this country has doubled between 2017 and 2018, from 100,000 to 210,000.