Eurocham Green Biz Day Sofitel, Phnom Penh, December 06, 2013 - Parallel Session B: Raising International Competitiveness and Quality

Eurocham Green Biz Day
Sofitel, Phnom Penh, December 06,
               2013
                    Parallel Session B:
   Raising International Competitiveness and Quality

What should we do to be competitive and also encourage
and adopt the practice of green business?
Cambodia – member of WTO: In global trade, we have to adopt the same principles as the
others.
• Trade and Environment: WTO perspective:
Members have rights to adopt trade related measures to protect environment, human
health and life as long as such measures comply with GATT rules, or fall under the
exceptions to these rules.
• GATT Rules:
Principle of non-discrimination.
Prohibition of quantitative restrictions.

• Exceptions: (GATT article XX), Paragraph concerning trade related environment: measure
  needs to be either:
Necessary for the protection of human, animal or plant life or health. (paragraph (b)); or
Relating to the conservation of natural resources. (paragraph (g)).

What should we do to be competitive …

Cambodia – member of ASEAN: In this regional integration, we have to
follow the blue print of AEC priority, that also include initiatives of
development and environment.
AEC priority:
• Managing of threat of climate change to the environment and economic
  development – realizing the impact of global warming to Agriculture,
  Fisheries, Forestry and other natural resources, then ASEAN:
Promote sustainable management of land, forest and water resources by
  minimizing the risks and impacts of climate change.
Integrate climate change mitigation and adaptation strategies into
  economic development.

What should we do to be competitive …
• Ensuring Food Safety: Ensuring freer movement of safe, healthy and quality food –
  meeting internationally recognized standard to increase region’s competitiveness in
  global food market.
ASEAN Good Agricultural Practices for Fresh Fruit and Vegetable: Adopting standard for
  production, harvesting, and post-harvesting: ensuring that food is produced and handled
  in a manner that will not harm environment, health, safety and welfare of workers in the
  agriculture or food sectors.
By 2012, ASEAN has established:
- 802 harmonized maximum residue limits for 63 pesticides.
- Common standard for production, packaging of certain fruits such as mango, rambutan,
  papaya, guava, durian,…
- 49 harmonized standard for animal vaccines.
- 13 criteria for accreditation of live stock establishments and three criteria for the
  accreditation of live stock products.
- Strengthen Genetic Modified food testing network.
- Develop code of conduct for responsible fisheries, implement Hazard Analysis and
  control Point (HACCP) for the production of fish and fish products.

What is the general standard for companies in
Cambodia?
• Standards: Imposing standards and voluntary standard – this would be described better by
  colleagues from MIME.
• Working environment:
 Safety standard:
 Labor Standard:
 Environmental Friendly standard:
• Quality related issues:
 Good Manufacturing Practice (GMP)
 Fire hazard materials
 Quality assurance
• Role of Camcontrol in fraud suppression, quality control: label requirement, market surveillance,
  production line control, quantity/volume check: petrol, Ethic monitoring: Logo; Mark,
  enforcement against counterfeiting and pirating products, …
• Application Rules of Origin – for preferential and non-preferential purposes.
 Garments, bicycles, tents, agricultural and fishery products, ….

Government initiative to raise standard in
response to international requirements
• DTIS Update 2013: Focused on SPS and TBT sensitive export such as
  Tourism, Milled rice, Fisheries, Cassava, Maize/corn. Silk, garment, process
  food, manufacturing assembly: to be competitive by meeting the
  requirements of importing countries and also building our niche position in
  the market: case of organic products.
Ensure producers will have access to proper support infrastructure
  including labs, fumigation facilities etc. to support export of SPS compliant
  products.
Ensure producers to be able to meets standards demanded by importing
  countries by working with ISC or other bodies to establish relevant
  standards for export purpose.
Promote the increase of added value for these products and services
  through value chain and diversification studies.

Government initiatives …
• Continued CSR program: improving quality of life in workplace, market place,
  environment and community. Encourage legal compliance as a first step and promote
  conscious effort to maximize positive impacts on stakeholders including society and
  environment.
Deeper reform for clean practices in public services and in business environment.
Continue to support Better Factories Project.
Promote CSR award to company who demonstrate outstanding social performance in
  contribution to social development of Cambodia. Ex: this year a number of Korean
  companies has been selected by KOTRA in cooperation with CDC to receive CSR award.
Continue to raise awareness on CSR to business community: through employment
  dialogue, charity works, code of conducts ethic in the work place, fund raising activities,
  community services/supports, education fund for employees, …
Encourage the implementation of CSR in all companies, not only MNCs, in Cambodia to
  increase competitiveness by exploring existing opportunity in sustainable tourism,
  sustainable forestry, agriculture and agro-processing industry, ethical manufacturing of
  new products, responsible investment, good governance and human resource
  development.